‘It's never enough... I hit myself knowing that money I'm putting towards it, could be money saved.’: I'm drowning in credit card debt and can't seem to make a dent. How do I break free from this cycle?

Hi Money Minder,

I’ve been struggling to chip away at my credit card debt. It feels like no matter how much I pay off, it just never seems to make a dent. I can’t help but think about the money I could be saving instead. Do you have any tips on how to tackle this debt and boost my credit score? Any advice would be greatly appreciated.

Thanks!

Debt-Dodger

Response from THE MONEY MINDER:

Hello There,

I understand the stress and frustration that comes with trying to pay off credit card debt, especially when it feels like you’re not making significant progress. First and foremost, I want to commend you for taking the initiative to address this issue head-on – that’s the first step towards financial freedom.

To tackle your debt effectively and improve your credit score, consider creating a budget to track your income and expenses. Start by cutting back on non-essential spending and allocating more funds towards paying off your credit card balances. It may also be helpful to explore balance transfer options to lower your interest rates and consolidate your debt into one manageable payment.

Additionally, prioritizing your debts based on interest rates can help you save money in the long run. Focus on paying off the credit card with the highest interest rate while making minimum payments on others. Once the high-interest debt is cleared, move on to the next one. Consistency and discipline in your repayment strategy are key to reducing your debt and boosting your credit score over time.

Remember, small changes and sacrifices now can lead to significant financial benefits in the future. Stay determined, stay focused, and take control of your finances. You’ve got this!

Take care,
THE MONEY MINDER