Debt Free Millennials: 3 quick strategies to pay off credit card debt fast

What's up friends? It's Justine with Debt Free Millennials, the channel for all things millennial money and debt-free living. If you're interested in learning more about living that debt-free millennial life, be sure to hit that notification button and subscribe so you never miss another video from yours truly. Okay, so today I'm going to be talking about three quick strategies that you can use to start paying off your credit card debt fast. According to the FINRA Foundation, one-third of Americans only pay the minimum balance on their credit card each month. That's crazy. And at least 20% of people inside of the Debt Free Millennials private Facebook group said that the biggest thing that they're struggling with financially is credit card debt. Guys, credit card debt is the absolute worst debt that you can have. This is also known as consumer debt. And if you think it's funny or you're shrugging it off or you don't think it's a big deal, try looking back into that credit card statement and see that you are actually paying anywhere between 15 to 25, 26, 27 percent interest for stuff that you bought a long time ago and you're actually paying more for it. It doesn't make sense. So it's not a laughing joke. You definitely have to put some strategies into play if you want to get back on the fast track to building wealth and stop living paycheck to paycheck. You make too much money to live that way. All right, so strategy number one. You are going to focus on paying off your credit cards according to highest interest rate and then lowest interest rate. So what you're going to do is you're going to log into your accounts. If you have debt from multiple credit cards, you are going to write out all of your credit card debts, who it's from, what the total balance is, what the minimum payment is and what the highest interest rate is. And then you're going to order those debts according to highest interest. Then you're going to focus on paying off that debt that has the highest interest rate first until it's all gone. And then you're going to move to the next and to the next. Now, strategy number two. You are going to pay off your credit card debts according to the lowest balance first. So take those same debts, reorganize them. So now you have the lowest balance regardless of interest rate at the top and then work your way down to the highest balance. This is also called the debt snowball method, which I've covered in another video. But this method relies on instant gratification. So you're going to feel really good with a quick win because you paid off the lowest balance first. Strategy number three. You are going to call up your credit card company and negotiate your interest rate. What's the worst that they could say? No. Why not give them a call? If you've been paying minimum payments to that credit card company on time for several months, chances are they may work with you. All you can do is ask, say that you want to work with them. You want to get this card paid off. You've been a loyal customer. You've been making those payments time and time again. So can you get that interest rate any lower than what it is now? You got to call and ask. If anybody has tried this method, I'd love to know. Please drop a comment below and let us know how you're paying off your credit card debt as quickly as possible. The more that we can share, the more we can get other people out of credit card debt fast. And here's a tip that applies to all of these strategies. If you have debt from multiple credit cards, you need to focus on one credit card debt at a time. What I mean is you need to be paying minimum payments on everything except for that one credit card that you are attacking first, whether it be the highest interest rate or the smallest loan balance. You need to continue to pay the minimums on everything else except for that. And that one loan or that one debt, you're going to attack and put everything you can towards that credit card until it's completely paid off. This works for any of the methods that I mentioned. So how are you attacking credit card debt? I'd love to know in the comments below. Tell me what strategy you're using or maybe it's a strategy that I didn't mention in this video and let's educate ourselves. I'm here to talk. You guys have any questions, let me know and I'll catch you in another video.