You try your best to make your payments, but interest charges eat up all your progress. The next month, you’re back to square one.
“Setting up automatic payments ensures that you are at least paying the minimum balance each month,” Phelps explained.
If you have a lot of high-interest credit card debt and a decent credit score, one simple way to get a leg up on paying it off is by moving the balance to a 0% balance transfer card.
Your lender may be willing to temporarily or permanently lower your interest rate, allowing more of your payment to go toward paying down the principal.
The thought of filing for bankruptcy might seem scary. And it’s definitely something you should only consider as a last resort since it can damage your credit for several years.
Sometimes the journey to becoming debt-free can feel like it’s never going to end, which is why Grant said it’s important to put in place positive reinforcements along the way.