💳 1. Target Debt One Card at a Time

• High-Interest First
Identify the card with the highest interest rate from your statements and prioritize paying it off.
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• Snowball Method
Begin with the card with the smallest balance. Once cleared, redirect those funds to the next smallest balance.
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💵 2. Exceed the Minimum Payment

Your statement reveals the prolonged duration and added interest cost of only paying the minimum. Exceeding the minimum payment cuts down overall interest. A handy tip: Even small extra amounts each month can substantially reduce your balance, lessening your interest burden.
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🏦 3. Consolidate Your Debt

Consolidation combines multiple high-interest debts into one lower-interest obligation, expediting debt clearance without raising your payment amount. Consider these options:
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• Balance Transfers
Utilize low balance transfer rates to shift debt from high-interest cards. Note the transfer fees (3-5%), and compare with the interest savings.
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• Home Equity
Leverage your home equity for debt payment. Home equity lines often have lower rates, but consider any closing costs.Remember, post-consolidation spending control is vital to prevent new debt accumulation.
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📱 4. Scrutinize and Adjust Spending

Examine your spending by categories like groceries, transportation, housing, and entertainment. See where your money goes with the Cheddar app. Identify cutback areas, then reallocate these funds to debt reduction.
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• Cash Payments
To curb overspending and impulsive buys, consider using cash or debit cards. This avoids extra fees and clarifies your financial inflow and outflow.
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• Utilize Financial Windfalls
Allocate unexpected financial gains like bonuses or raises to debt reduction, accelerating your journey to being debt-free.