Tips for Credit Card Debt Reduction
The key to help credit card debt reduction is to either pay off your balances every month or — when you can't do that — make higher-than-minimum payments. And while this may seem like a challenge if your credit card debt is very high, your determination and disciplined approach will go a long way toward helping you succeed.
In addition, you may reduce your credit card debt when you simply become more conscientious about where your money goes. To that end, Ally has some online banking tools to help you get and stay organized, which can greatly reduce dependence on credit cards:
- Start an emergency fund account online. Putting money in savings for emergencies — in a savings account, Money Market Account, CD or wherever it makes sense for you — may give you a way to tackle unexpected expenses without saddling yourself with more credit card debt. Plus, while brick-and-mortar banks are slashing savings account rates and raising fees for other services, Ally offers competitive interest rates, so your money works harder and you keep more of it.
- Use a debit card. Because debit cards pull money directly from your checking account, you may be less likely to spend more than you have — which makes them a great way to keep your spending in check.
- Check out interest checking. Ally offers interest-bearing checking accounts, so your everyday source of cash can work harder while you're trying to pay down your credit card debt.
- Sign up for balance Alerts. Sign up for email alerts so that, for example, when your account dips below a certain level, you get an email — which can help you better manage your finances and avoid the need to shop with a credit card.
As you work to reduce credit card debt, count on Ally's products to help you reach your financial goals. We'll do right by you and your money.