Can you pay off multiple credit cards all at the same time? Yes, that is possible. But you need to have the extra money that will help you pay it all off.
It may seem like a difficult task because of all the credit cards that you have to take care of. But this is needed if you want to put yourself in a good financial position. Don’t worry because there are tips that you can use to help accomplish this.
Although the tips will help make the task easier, it will still require some commitment from you. Some of what you’ll have to do will require you to make sacrifices – specifically when it comes to your lifestyle. You may have to give up some of the things that you use to spend on. Or you probably have to stop doing activities that cause you to spend unnecessarily.
While these may restrict your life, it’ll be for a good cause. If you can pay off multiple credit cards in the process, it’ll be worth everything you have to give up. Credit card debt involves high-interest rates, expensive finance charges, and other fees. If you want to free your finances from these credit obligations, you have to be ready to do whatever it takes.
Tips to earn the extra money to pay off multiple credit cards
There are many strategies to get started on your journey towards credit card debt recovery. But the one thing that will really expedite the process is to get some extra money. Take note that this is money that you need to produce or earn on top of the minimum payment requirement that you’re already paying your credit cards. The minimum payment requirement is basically paying the high-interest rate of the card. If you can pay more, you’ll be able to eliminate more of the principal balance. This will get you towards debt freedom faster. It’ll also allow you to save money on the interest and financial charges.
So what are the strategies you can use to get the extra money needed to pay off multiple credit cards?
Start by taking a look at what you have. It’s probably time to declutter your house anyway. See if there are items in your home that’s just taking up space. Or maybe there are things that you can already give up. Instead of letting it rot in your cabinet, attic, or basement, why not sell it? There’s a saying that says – what seems like junk to you may be someone else’s treasure.
So take everything that you don’t need for now and sell it. The profit you’ll get can be used to pay off multiple credit cards. You don’t just earn money, you’ll also clean up your home in the process.
Downsize your lifestyle
You can also save a lot of money if you decide to downsize your lifestyle. There are many ways for you to do this.
If it’s a minimal downsizing, you might just choose to avoid spending on certain categories. Like maybe instead of eating out once a week, you’ll do it once a month. Or the family holidays that happen 2x a year will now just be one. Take a look at the expenses that you can live without and find out how you can save money.
If you need a huge amount for your debt payments, you might need a more significant downsizing. This means you’ll take more drastic measures – like downsizing your house. You either rent a smaller apartment or you’ll sell your bigger house and buy a smaller one.
The benefit of downsizing your home is you can easily lower a lot of your expenses. Like your utility bills. After all, heating or cooling a smaller home will be cheaper. You also don’t need a lot of things with you. So you can probably sell off some of the things that you own. Again, that money and whatever you save can be used to pay for your debts.
Get a side job
Another option to pay off multiple credit cards is to increase your income. Get a side job that will help meet your various financial obligations. This is actually something that a lot of people do. Reports reveal that 3 out of 10 Americans have a side hustle to make ends meet. You can bet that some of these people probably have debts as part of these payments.
So what can you do to earn extra for your debt obligations?
You can go online and get a freelancing job. Or you can make something to sell for profit. Maybe these can be baked goodies or you can offer to cook packed lunches for colleagues. The bottomline is, if you have a skill that you can capitalize on, use that.
Cash-out your investment
If you are desperate to pay off multiple credit cards, you also have the option to cash-out any investment that you may have. This could be stocks and bonds that you have invested in. Or if you downsize your home and you receive extra money from selling the bigger house, you can use the money to pay off your debts.
Some would look at their retirement plans and borrow from it. If there’s an interest to be paid, that will go to your balance anyway. But if you want to use this option, make sure you understand the tax implications of your withdrawal.
Why you have to get out of credit card debt fast
You might be wondering, why do I have to sacrifice so much to pay off multiple credit cards? Can’t I just pay it off one by one so it won’t restrict my finances too much?
That’s possible, but it will keep you in debt longer. When you keep your credit card debt for a long time, you’ll lose a lot of money. It’s mentioned earlier in this article that you have to pay for the high-interest rate, finance charges, various fees, and even penalties. These are funds you could have used on something else.
But saving money is not the only way to benefit from paying off your cards early. Here are 4 more reasons why you should do it.
This means you are free to spend your money however you want. You don’t have to restrict yourself from spending your money because you have to pay off debt. That’s no longer needed if you’re completely debt-free. If you want to use the extra money you get after paying for your basic needs, you are free to do so. And there’s no guilt when you do.
Retiring early is another benefit if you can pay off multiple credit cards immediately. This is ideal considering the fact that more than half of the respondents of one survey revealed that they expect to either retire after the age of 65 or not at all. That means there are people who won’t stop working because they don’t have enough savings. It’s safe to say that this is probably because their money is tied to debt payments.
So if you can pay off your debts earlier, there’s a high chance that you can save money for retirement or retire earlier than planned.
When you pay off multiple credit cards you’ll also enjoy a stress-free life. You don’t have to worry about meeting all your debt payments. You can enjoy your income based on how you decide to use it. If ever you encounter an emergency, you won’t have to feel scared that your debt payments will be cut short. It won’t threaten your credit reputation in any way. It’ll be one less thing for you to worry about.
Since you are living a stress-free life, imagine how that’ll affect your relationships? The burden removed from your life will help you focus on other things that matter – like your loved ones. You can face them with a lighter and happier disposition. It’ll make you more patient and easy to be with. With your problems with debt gone, you can nurture the people around you without worrying about anything. And you won’t feel the need to restrict spending on them.