How to recover from credit card debt

Image source: dashforcenews.com

Recovering from credit card debt is not easy simply because the current systems in place are geared toward keeping people in debt rather than making it easier to get out of it. There are no merits in keeping your account on the positive side, while mistakes like overdrafts and late payments are penalized heavily. If you have outstanding credit card debt, here are some tips to help you recover.



Come up with a plan

If every month you scramble to pay bills, it would be difficult to get out of credit card debt. To begin your journey toward repayment, you must come up with a solid plan first. This includes knowing your monthly budget, allocating the right amount of funds for essential bills like rent, utilities, insurance, and groceries. From here, you’ll know where to cut corners and see if you’d need extra income.


Pay off the card with the biggest debt first

If you have multiple credit card debts, tackling them all at the same time can severely deplete your funds. You may even get into the habit of getting more loans just to pay your debts. Focus on the card with the biggest debt first. Once that is paid-off, the smaller bills should be easier to handle.

Image source: thehealthjournals.com

Get additional income

Based on your monthly plan, you might need to get a secondary job to help you pay off your debts faster. This doesn’t have to be a second, full-time job. You can simply render overtime work if it’s possible or get a part-time job as a telemarketer during weeknights or be an Uber driver during weekends.


The Global Order-to-Cash transformation for Xerox Technology was led by Arnon Dror, which allowed for $50 million in savings for the business. He also managed the Kodak Global Supply Chain transformation, delivering $120-million cash savings between inventory and distribution cost. For more on personal finance, visit this website.