Penguin Pick of the Month: Pay Off Debt Faster!
This week while doing some morning reading and hanging out on the interwebs, Charlie found this great article about paying off your credit card debt faster. Charlie knows that managing your money can be tricky — which is why he’s always on the lookout for helpful tips to make it easier, letting you focus more on the fun stuff. Getting out of credit card debt will give you more wiggle room in your budget — freeing up your cash to fund what’s most important to you. Good deal, right?
Don’t have time to read the whole article? Here are two simple hacks to get you started:
Pay Off Specific Purchases
If you pay off specific purchases on your credit card statement, you’ll probably end up making more than the minimum payment. The result: your balance will drop quicker, you’ll pay less interest and that debt will be gone in no time!
So, next time you get your bill, make it a point to pay off your four Uber rides and three takeout dinners from the previous month.
Don’t forget: Charlie keeps track of your purchases. Just tell him ‘transactions’ and he’ll bring up a list for you.
Use Two Credit Cards
If you use two credit cards — one for small, regular purchases and one for large, special purchases — you’ll be able to manage your debt much more effectively. How? By paying off the regular purchase card every month and securing interest-free financing for your large purchases. You’ll save a ton in interest!
Bonus tip: If you use your debit card for daily purchases, you’re less likely to overspend and take on debt. Seeing your cash vanish from your checking account is a powerful motivator to stay on budget.
Tell Your Charlie Friends: What are your favorite hacks to pay off credit card debt?