Our new website is optimized for the most current web browsing technology. If you are using an older web browser, part of our website may not function properly as designed. Please consider upgrading your browser for an error free experience.
At Solvable, we care about your financial well-being and are here to help. Our research, articles and ratings, and assessments are based strict editorial integrity. Our company gets compensated by partners who appear on our website. Here is how we get compensated.
At Solvable, we care about your financial well-being and are here to help. Our research, articles and ratings, and assessments are based strict editorial integrity. Our company gets compensated by partners who appear on our website. Here is
See More
The average U.S. household carries close to $16,000 in credit card debt, which continues to add interest and grow over time. Adding to the burden, the national average credit card interest rate is 16.14%.
With this much debt, families may find buying a home, putting money away in a college fund, saving for emergencies, saving for retirement, or balancing everyday living expenses to be difficult.
For many, this debt can be overwhelming and difficult to overcome, but by approaching the situation with a change in spending habits, a commitment to saving, and a debt payoff strategy, you can manage your credit card debt.
Spending Habits
In many cases, poor spending habits lead to credit card debt. To pay off credit card debt and keep it from happening in the future, you need to commit to changes in mindset and spending habits that set you up for success, such as the following:
Create a Budget
A budget is one of the easiest ways to get your finances back on track. To start, list your monthly and daily expenses for a few weeks to see where your money goes. Once you have these numbers figured out, separate the necessities, such as your housing and utilities payments, from the nonessential spending. Then, readjust your budget to ensure you’re living within your means.
Once the budget is established, commit to it. If you find yourself straying, or if your circumstances change, reevaluate your budget and look for ways to adjust it to get closer to your goals.
Cut Back on Luxuries
If you want to be free from debt, some sacrifice may be required. Whether you’re giving up dining out, skipping the daily specialty coffee, or cutting back on nonessential clothing, evaluate the unnecessary spending and put that money toward paying off debts.
Resist Temptation
Impulse spending is a big problem for many people, so if you’re prone to window shopping or online shopping that can turn into an impulse purchase, try to redirect your attention to something more productive. Try exercising, reading a book, listening to music, or other free activities that keep you from unnecessary shopping.
Saving Habits
After you’ve committed to more responsible spending habits, saving all the extra money is the next step. This effort will not only help you pay off your debt sooner, but it will also give you the peace of mind of knowing you’re prepared for an unexpected expense or a financial emergency.
When you’re trying to recover from credit card debt, even a small issue, such as a car repair or broken appliance, can be enough to derail your efforts. Your first saving goal should be accumulating an emergency fund of three to six months of basic living expenses. It may take some time, but once you have this fund, you’ll be prepared for any unexpected expenses that arise.
Be Responsible With Windfalls
You can be tempted to spend any extra money you have, such as a tax refund, lottery winning, work bonus, monetary gift, or other one-time lump sum. Instead of wasting that money, put it toward savings or your existing credit card debt.
When you’re trying to relieve yourself of credit card debt, many false savings, such as balance transfer credit cards with introductory rates or discounts, can tempt you. Although these options may seem like the answer, they may only get you deeper into debt in the long run. In addition, your credit score could drop from a credit inquiry, which doesn’t help your future interest rates.
Debt Payoff Strategy
Now that spending and saving are sorted out, you need to devise a plan to pay off your debt. It may take a while, depending on how much debt you have, but it will be worth the sacrifice for lower interest rates, better offers, and financial security.
Pay More Than the Minimum
The minimum payment your credit card requires is only enough to keep you from compounding your debt and covers the interest. When you pay only the minimum payment each month, your credit card company keeps earning interest, while you barely scratch the surface of your principal debt. When possible, pay over the minimum payment to ensure you’re actually paying off your debt rather than keeping it where it is.
You can take two approaches to pay off multiple cards:
Pay the lowest balance first. Many people choose to tackle the highest debt first, but that approach can become disheartening quickly. After saving and putting all your extra money toward the high balance and barely seeing it move, you can feel like you’re never going to get anywhere with your debt. When you pay off the lowest balance first, you not only free yourself from the extra payment, but you also get the sense of accomplishment and relief that will keep you on track. From there, you can take on the next highest balance and work your way toward having one payment on the largest debt.
Pay the highest interest first. You can also save money on interest by focusing your payoff efforts on the credit card with the highest interest rate. Note that your other cards will accumulate interest while you’re paying this debt off, but since you’re paying interest either way, freeing yourself from the highest interest rate will be worth the effort.
Always Pay on Time
No matter which approach you use to pay off your credit cards, be sure you’re not doing so at the expense of on-time payments for your other credit cards. Late payments can damage your credit score, so pay at least the minimum payment on time for your other cards while you’re paying off the highest balance or highest interest card.
Get Help With Debt Relief
If you’re struggling to manage your credit card debt, let us help. At Solvable, we’ll help you understand your debt with personalized education and provide you with access to debt relief providers so that you can get on the road to a debt-free life. Contact us today to learn how we can help.
Solvable is a for-profit company. But a free service for consumers. Partners cannot pay us to guarantee favorable reviews or ratings. We do not publish favorable (or unfavorable) reviews or assessments at the direction of an advertiser or partner. We always work to put consumers first and do our best to provide value in meaningful ways. We only work with companies that put the consumer first too.
How We Make Money
Solvable is compensated by some of the companies seen on our website. Most often, Solvable receives fees when one of our readers clicks, fills out a form, applies for, or receives a financial product from one of our partners. We also earn fees for capturing consumer stories and writing about them, displaying advertising, having our partners sponsor certain parts of the site, and writing content that may be relevant to our partner and their audience. This compensation may impact where products appear on this site, including article pages, comparison listings, the order in which they appear or if they will even appear on a given page, and our matching recommendations. Solvable has not written about, reviewed, or rated all financial products available to consumers.
In addition, we may be compensated in the following ways as well:
Referrals to consumers who use the online form or locator line that may provide expert answers to questions;
Marketing tax resolution, credit correction, student loan, consumer law services such as FDCPA and bankruptcy assistance;
Ads served through companies such as Google (We don’t totally control all of the specific ads that appear on our site.);
Referrals to services that help consumers with tax resolution, credit correction, student loan, consumer law services such as FDCPA and bankruptcy assistance and that may negotiate settlements on their debts
We do recommend that you shop around and compare services and costs with other companies while performing your own due diligence, especially since people’s experiences with companies can change over time.
Free Solvable Services
The offers that you are matched up with are from companies or attorneys/law firms that we may receive compensation from. Based on our initial review of such companies or individuals, we feel comfortable introducing them to our readers. We won’t recommend something just because we’re offered payment to endorse or promote it. However, we do recommend that you shop around and compare services and costs with other companies while performing you own due diligence, especially since people’s experiences with companies can change over time.
We may be compensated for the following:
Referrals to consumers who use the online form or locator line that may provide expert answers to questions;
Marketing tax resolution, credit correction, student loan, consumer law services such as FDCPA and bankruptcy assistance;
Ads served through companies such as Google (We don’t totally control all of the specific ads that appear on our site.);
Referrals to services that help consumers with tax resolution, credit correction, student loan, consumer law services such as FDCPA and bankruptcy assistance and that may negotiate settlements on their debts.
We are not attorneys and we don’t provide legal advice. As always, we encourage you to do your homework and check out individuals and companies before you hire them. If you are already working with an attorney, we urge you to ask them your questions. After all, they will be familiar with your situation and the laws in your state.
We hope that you find solvable helpful in your efforts to get a fresh start.
Personal Loans Advertiser Disclosure
The Personal Loan offers that appear on this site are from companies or affiliates from which solvable may receive compensation. This compensation may impact how and where products appear on this site (including for example, the order in which they appear or whether a lender is “featured” on the site). solvable does not include all Personal Loan companies or all types of offers available in the marketplace.
Personal Loan Providers determine the underwriting criteria necessary for approval. You should review each Provider’s terms and conditions to determine which loan works best for you and your own personal financial situation. All reasonable efforts are made to provide and maintain accurate information. All rates, fees, and terms are presented without guarantee and are subject to change pursuant to each Provider’s or affiliates discretion. There is never a guarantee you will be approved for credit or that upon approval you will qualify for the advertised rates, fees, or terms that were shown.
Be sure to speak with your representative about the actual term and rate you may qualify for based on your credit history and ability to repay the loan. Lenders may charge an origination fee generally around 1% of the amount sought. Be sure to ask up front about all fees, costs and terms associated with each loan product. Loan amounts of $1,000 up to $35,000 may be available through participating lenders or affiliates; however, your state, credit history, credit score, personal financial situation, and lender underwriting criteria can impact the amount, fees, terms and rates offered. In some cases, lenders may require that you have an account with them already and for a prescribed period of time in order to qualify for better rates on their personal loan products. Ask your representative for details.
Credit Card Advertiser Disclosure
The card offers that appear on this site are from companies or affiliate offers from which solvable may receive compensation. This compensation may impact how and where products appear on this site (including for example, the order in which they appear). solvable does not include all card companies or all card offers available in the marketplace.
Credit Card Providers determine the underwriting criteria necessary for approval. You should review each Provider’s terms and conditions to determine which card works for you and your personal financial situation. Information is provided by the Credit Card Providers and is not a guarantee of approval.
All credit card rates, fees, and terms are presented without guarantee and are subject to change pursuant to each Provider’s discretion. All reasonable efforts are made to provide and maintain accurate information. There is no guarantee you will be approved for credit or that upon approval you will qualify for the advertised rates, fees, or terms shown.
Any opinions, analyses, reviews or recommendations expressed in articles, marketing materials or otherwise are those of the author’s alone and/or solvable, and have not been reviewed, approved or otherwise endorsed by any Credit Card Provider.
See the online Provider’s credit card application for details about terms and conditions. Reasonable efforts are made to maintain accurate information. However all credit card information is presented without warranty. When you click on the “Apply Now” button, you can review the credit card terms and conditions on the provider’s website.
Business Loans Advertiser Disclosure
Business Loan offers that appear on this site are from companies or affiliates from which solvable may receive compensation. This compensation may impact how and where products appear on this site (including for example, the order in which they appear or whether a lender is “featured” on the site). solvable does not include all Business Loan companies or all types of offers available in the marketplace.
Business Loans are those loans that are for commercial use and any property and/or proceeds from the proposed request will be used by the requestor for commercial purpose only and not for any personal, family or household purposes.
Most of our Business Funding Partners or affiliates, do not require collateral for business loans; however, please note that it is possible to be offered another product by the lender depending on your needs and if the underwriting requirements dictate the same. Traditional bank and SBA loans generally are known for collateral requirements.
There is no one-size fits all business loan. Rather there are several types that will likely be offered and or discussed with you upon completing your request. Business Funding Partners determine the underwriting criteria necessary for approval, you should review each Partner’s terms and conditions to determine which business funding option works for your business’s financial situation. All reasonable efforts are made to provide and maintain accurate information. All rates, fees, and terms are presented without guarantee and are subject to change pursuant to each Partner’s discretion. There is never a guarantee your business will be approved for credit or that upon approval your business will qualify for the advertised rates, fees, or terms shown. Lender terms and conditions will apply and all products may not be available in all states. Ask your loan representative for details.
Student Loan Refinancing Advertiser Disclosure
Student loan offers that appear on this site are from companies or affiliates from which solvable may receive compensation. This compensation may impact how and where products appear on this site (including for example, the order in which they appear or whether a lender is “featured” on the site). solvable does not include all student loan companies or all types of offers available in the marketplace.
Pursuant to the contracts between solvable and the Partners or affiliates on its Network, solvable may also receive information from the Partner or affiliate regarding the status of your application including, but not limited to, the amount or disposition of your loan. Information specific to the Partner/affiliate’s use of your information will be found in their specific Privacy Policy.
Potential savings may vary based on the interest rates, balances and remaining repayment term of the loans you are seeking to refinance. Your overall repayment amount may be higher than the loans you are refinancing even if your monthly payments are lower. Variable rate options will fluctuate over the term of your loan with changes in the LIBOR (or other index utilized by the lender) rate, and will vary based on applicable terms and presence of a cosigner. Fixed interest rates may be based on applicable terms and presence of a co-signer. Additional terms and conditions, and rates are subject to change at any time without notice and may not be available in all states or for all types of current student loans. Such changes should only apply to applications taken after the effective date of change. Please note: Due to federal regulations, Lenders are required to provide every potential borrower with disclosure information before they apply for a private student loan. The Lender you select is required to provide you with an Application Disclosure and an Approval Disclosure within the application process before you accept the terms and conditions of your loan. solvable is not a lender or creditor, it does not offer, extend or alter credit terms. Only participating lenders can perform the full application and deliver the required disclosures, please ask your lender about rates, terms, fees, and potential discounts that may be available for each product.
Please Note:
Certain federal and private student loans may not be eligible for consolidation/refinance.
Certain consolidation/refinance plans may result in higher monthly payments or negative consequences (i.e. prepayment penalties).
Consolidation/refinance may lead to other negative results, such as loss of grace periods.
Loans in default generally cannot be consolidated until completion of a repayment trial plan so tell your lender if you are in default and determine relevant options (be wary of those asking for upfront fees as well)
Other options or programs may fit your needs (i.e. personal loan, debt consolidation and/or debt relief). Consult your financial and/or tax advisor prior to making any decisions.
Solvable is not a creditor as it does not offer, extend or alter credit; rather it is an online market lead generator that allows consumers to shop and compare rates, terms and costs associated with financial products such as mortgages, auto loans, personal loans, student loans, etc. solvable does not originate or fund any product it markets; rather it has a network of lenders or Partners/affiliates. You may choose to speak with one or more of these lenders or Partners/affiliates to determine what your actual terms and savings may be. Only a lender can provide you with a formal application for credit, your inquiry form here is merely an expression of interest and/or intent to obtain credit or assistance. You must discuss your actual credit situation and fill out the lender’s required documents prior to obtaining an extension of credit. Network lenders may not have the best or the lowest rates so you are encouraged to continue to shop and compare additional lenders, credit unions, local financial institutions, etc. to ensure you are truly getting your best deal for your situation.
You should contact your tax professional or other financial advisor to determine if you can actually realize savings by refinancing when it can extend the life of your current loan. You should ask the lender about all terms, rates, fees and costs associated with each product and if you will realize a net tangible benefit from the same. All initial estimated savings is done by trying to calculate what your rate may be; however, solvable does not have that information and cannot guarantee potential savings or that lenders will approve you for such product that would warrant those savings. Rates are not guaranteed and change daily. Lenders/Brokers/Dealers/Partners that perform the actual underwriting will have to determine if you meet their underwriting criteria which is unknown to solvable at the time of matching/offer/quote delivery. All amounts are estimates and examples only and do not represent an actual offer.
Download Now!
Thank you for your information.
We will get back to you soon.
Recommended
