A stack of high interest credit cards.

Find Money to Pay Off High Interest Credit Card Debt

High interest credit card debt can wreck your finances. Because the monthly interest charges are so high, it is hard to make any headway on the principal. So, what are you supposed to do if you want to finally get out of credit card debt? Keep reading and learn about what you need to do.

What is a High Interest Credit Card?

A high interest credit card is a type of credit card that charges a high interest rate. Pretty obvious, right? It is different from the average credit card that charges a low or standard interest rate in that the rate can be double what someone with good credit is being charged. In addition, fees and other charges are usually much higher.

Qualifying for a high interest credit card is much easier than one with a standard rate. This is because, with the high interest being charged, there is a lot of profit to be made. That means that they are willing to make more risks with who they approve for credit.

This is not to say that high interest cards are completely bad. They do allow those with bad credit to rebuild their scores. Credit is necessary in order to build a good score and, unfortunately, the sometimes it comes at a cost.

5 Ways to Find Money to Pay Off High Interest Credit Cards

There are many ways to find money to pay off high interest credit card debt. If you have a high interest credit card debt, here are the top five ways to find money.

1) Sell Your Stuff On eBay Or Craigslist

eBay and Craigslist are two of the largest, most popular websites for selling items. Both sites have an easy-to-use interface that allows you to list your item for sale in a matter of minutes to get the money you need to pay down debt. You can access these sites on the web, or on mobile devices.

Listing your item on either site can result in a quick sale, although Facebook Marketplace with their Messenger service is often much more convenient.

2) Sell Your Old Clothes on Poshmark

Poshmark is a social marketplace where people buy and sell their pre-loved, designer and luxury clothing. Poshmark allows consumers to get a second life for their fashion, with the opportunity to make money off of the clothes they don’t wear anymore.

You are not going to make money selling a Hanes Tee on a website like this, but if you have designer clothes, it may be a way to get top dollar.

3) Get A Better Paying Job

Make sure you’re getting paid enough to support your lifestyle, and consider paying off your credit card balance in small increments.

Everyone wants more money, but they seldom act on it. Staying at your company will likely never result in a big pay raise. If you want that, and the ability to pay off your high interest debt you need to move jobs. Companies are more than willing to pay big money to attract new talent, but they pay the bare minimum to current workers, counting on complacency. Staying at a job might get you a 2000 dollar raise at the end of the year, but you might be able to increase your salary by 15000 dollars when you switch companies.

4) Take Up A Side Hustle

A side hustle is a job or business that you do on the side and for which you earn extra money for other activities. Often, this money can help you make extra payments on your credit card debt.

There are a lot of ways to add a side hustle to your routine. It could be anything from driving for Uber,to pet sitting for Rover to applying for a late night stocker position at your local Walmart. Every dollar counts when trying to pay off your high interest debt and even a simple shift at the big box store once a week might allow you to pay an additional 500 dollars a month on your debt.

5) Make Extra Payments On The Card

A lot of people struggle to make both their monthly payments, but if you have a little extra each month, put it on your card balance. Every extra dollar that you pay on your card is a dollar that you are not being charged interest on.

How To Get A Credit Card With A Good Rate

Now that you see how to pay off your debt, let’s look at how to finally get a good credit card with a reasonable interest rate. It is not easy, but it will improve your overall financial picture. What you need to do is improve your credit rating.

Improving Your Credit Rating

Credit ratings are a measure of how likely you are to pay back your debts. They can be improved by making timely payments, staying current with your bills, and avoiding late payments.

It is important for you to know that it is possible for you to improve your credit rating even if it is not in the best shape right now. There are many ways in which you can do this, but the all boil down to a few things.

Reducing Debt On Your Revolving Credit Cards

If you’re like most Americans, your credit card debt is a problem. But there’s hope! By using the steps above, you can reduce your overall credit card balances. This is called credit utilization, how much of your credit you are using. To be considered good in this category you should be using less than 30 percent of your credit. To be considered great, you should be using less than 10 percent of your available credit. A lofty goal, but one that you can reach.

Making Your Payments On Time

Paying your bills on time is important, especially it comes to your credit score. In fact, it makes up about 33 percent of your total score and just one 30 day late payment can affect you for years.

To make your payments on time going forward, take advantage of the tools available. Auto payments and payment reminders can help ensure that your bill gets paid on time.

Stay The Course

The above two items represent two thirds of your credit score, so in just taking care of them, you will get better credit. Other things that you can do include avoiding applying for new credit, maintaining old accounts and trying to have a diverse credit profile. Diverse means a mix of installment loans and revolving credit. Lenders like to see that you can handle all types of credit.

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