Let’s look at a few ways to get smart about your credit cards - ways to pay off your debt faster, while also saving you more money.
Make a list
Sit down and make a list, compiling all of your debts in one place. Here’s a short list to get you started:
- credit cards
- car loans
- student loans
- mortgage loans
Add your specifics and note the date when payments are due each month. Keep the list handy and updated, too.
Everybody has debt. You’re not alone. Sometimes it helps to know what others dealing with. Here’s a breakdown of the average American’s debts:
- Mortgage: $35,660
- Auto loan: $4,760
- Credit card payments: $2,980
- Student loan: $5,610
- Other debt (personal loans, payday loans, etc.): $1,520
Whatever your debt is like, don't let the numbers overwhelm you. Take a breath and think practical.
- Start with the debts that cost you most money (the ones charging most interest every month). Work on paying off those first.
- Keep payments within your budget. Avoid huge payments whenever you can.
- Make smaller payments more regularly. It’s a smarter, more comfortable approach.
Stop using your costliest card
Find the card that’s charging you the most in interest, and set it aside now. Take it out of your wallet and disconnect it from autopay. You’ll start saving money right away, and if you need to use other cards in its place, at least they won’t cost you as much.
Refinance your loans
Talk to your lenders and see what’s possible. When you shift to a home loan or personal loan with a lower interest rate, you’ll save more month after month automatically. It’s a low-impact way to hold onto more money - funds you can redirect to pay down your cards.
Use apps like Bright
Lots of apps are designed to manage your debt - scheduling payments, helping with budgets and offering savings tips.
Your personalized Bright Plan goes a step or two further, using data science to find the fastest, smartest ways to help you save more. Bright handles everything for you, creating a plan tailor-made to you, your style and your spending habits. Your Bright Plan also makes your payments for you, automatically, and even adjusts when your plans shift.
Just connect your cards, set your goals and your Bright Plan gets to work.