We’ve been talking about ways PFCU members can pay off credit card debt once and for all. Last week, in Part 1 of our two-part series, we looked at four ways to rid yourself of credit card debt.
Here are PFCU’s last four tips:
- Take advantage of your tax refund. You can use this to pay off some of your credit card bills. A rule of thumb, you never want to go over 30-50% of your balance, as anything over 50% affects your credit score. Every dollar put towards cutting debt can help. Your credit score should improve if you maintain a debt-to-credit ratio below 30 percent and pay every bill on time.
- Establish an emergency fund. If possible, it is best to have an emergency savings account established, so that you’ll already have that money accessible -- although not too accessible -- rather than having to use a credit card when emergencies come up. Do not treat your credit card as a disposable income.
- Make a budget. Focus on living within your means and examine why you accumulated so much debt in the first place, so that history doesn’t repeat itself. If you don’t deal with the issues that caused you to overspend, you’re bound to make the same mistakes over again.
- Call your credit card company. Talk to your credit card company to see if they can get your interest rate lowered. Especially if you’ve been a loyal, long-time customer, they’re more likely to find a way to keep you satisfied rather than have you switch to another company. Check their website to see if they’re having any introductory offers for new customers, it’s always worth a shot to see if you can be approved for the discounted rate.
Paying off credit card debt takes persistence and sacrifice. By following these tips, you can take control of your debt. If you have questions about getting out of debt, PFCU provides members with free access to financial counselors through BALANCE, who can answer financial and credit related questions. Call 888-456-2227 or email firstname.lastname@example.org to get your questions answered by one of the financial counselors today.