Ever sit and watch a hamster scurry around on one of those wheels? Those little guys run and run…but they just don’t get anywhere.
Which is just what happens if you only make a minimum payment on your credit every month. Sure, it feels like you’re moving forward, but you’re really just spinning your wheel.
Get yourself off that wheel in three easy steps!
1. Make the switch to a lower-rate credit card. All credit card rates are not the same and even a few percentage points can make a big difference.
What interest rates are you’re paying on each of your credit cards?
How do they compare to other options?
Did you choose your card so you could get things like frequent flier miles and cash back? Those cards tend to have a higher interest rate, and if you’re not paying them off each month, those “rewards” might actually cost you money.
Compare your current rates to a Summit credit card—chances are good that Summit’s card has a lower rate than what you’re paying today. And it’s so easy to switch.
2. Use online banking to make a credit card payment every time you get a paycheck. As soon as that paycheck hits your account, send a chunk of it off to pay down your credit card. Poof! The money is gone before you even got a chance to think about it (right?). Plus, you’ll have the thrill of watching that credit card balance go down, down, down with every paycheck.
3. Make a debt payment plan. You didn’t get into your current credit card situation overnight and it might take a little while to get out. Don’t get discouraged! Make a plan! If you have multiple cards, start with the one that has the lowest balance and focus on paying it off. Then, take the money you were using to pay off that bill and apply it against the next card until that one’s paid off. Keep going until you’re credit card debt free!
Sure, these three steps take discipline—but we know you’ve got it in you! Get moving—really moving—toward a better financial future today!
Smart money tips brought to you by Red SHOES, Summit’s exclusive financial wellness program.