Credit Card Debt

4 Habits That Will Help You Pay Off Debt And Remain Debt-Free

Paying off credit card debt can seem like a never-ending battle. If someone is carrying a high balance on a card with a high interest rate, it can seem like a dent will never be made toward paying off the total amount, especially if that person is only making minimum payments.

Here are some tips to help you pay off credit card debt and keep it off.

  1. Put money into a savings account.

It may seem counter-intuitive, but to pay off credit card debt, it helps to also put money away into savings. According to recent statistics from Bankrate, 29 percent of Americans have more credit card debt than they have money in emergency savings. Even worse, 28 percent of them reported having no emergency savings at all.  When a financial crisis hits, it only takes one unexpected expense to completely drain a small savings account or push that person into debt.

It is recommended that a person has at least three to six months of savings. Even if the individual can put away a small amount from each paycheck over time while paying on other debts and expenses, eventually that account will grow into something that can truly help him or her in a difficult situation.

  1. Take Your Financial Situation in for a Check-up.

Just like every person needs to see his or her doctor annually for a check-up, all consumers need to take a holistic and honest look at their financial situations. Look at what type of expenses are necessary while others may be discretionary. Examine what type of emergency savings may be available, as well as what type of plan, including IRAs or 401(k)s are available

  1. Prepare a Budget.

It’s never too late to prepare a budget. It is important that this budget be a realistic one and something you can stick to in the long run. Look at how much you are spending every month, as well as how much income is being earned. Examine every source of spending to see what can be reduced or even eliminated.  Make sure a certain amount of money is also set aside to pay towards debt, tackling one credit card at a time, starting with the one with the largest balance or highest interest rate first.

  1. Take Advantage of Technology.

So many banks and financial institutions use automation today, which can make saving that much easier. By taking advantage of these resources, a consumer can put money into savings before it is spent. Set up an automatic transfer every month, putting a small amount into savings before it can be used for any other expense. These automatic transfers are excellent tools for keeping the consumer on track toward meeting his or her financial goals.

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If you have questions on this topic or are in financial crisis and considering filing for bankruptcy, contact an experienced Miami bankruptcy attorney who can advise you of all of your options. As an experienced CPA as well as a proven bankruptcy lawyer, Timothy Kingcade knows how to help clients take full advantage of the bankruptcy laws to protect their assets and get successful results. Since 1996 Kingcade Garcia McMaken has been helping people from all walks of life build a better tomorrow. Our attorneys’ help thousands of people every year take advantage of their rights under bankruptcy protection to restart, rebuild and recover. The day you hire our firm, we will contact your creditors to stop the harassment. You can also find useful consumer information on the Kingcade Garcia McMaken website at

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