How to Get Rid of $30k in Credit Card Debt

Key Points:

• $30k or more in credit card debt may require as professional debt settlement
• Create a budget that allows for debt payments, ideally above the minimum payment
• Use cash instead of credit cards. This may help prevent you from increasing the balances on your credit cards

Find Financial Freedom

What do you do when you have $30,000 in credit card debt? Don’t give up hope! The following debt management plan tips can help you find financial freedom.

If you can’t afford your high debt amounts, options such as debt consolidation loans may be out of your reach, especially if your credit score has been impacted. A debt consolidation loan requires a good credit card balance to be effective, or you’ll end up paying the highest interest rate in the long run for rates and fees.

Thankfully, there are still several options open to you, even if you no longer have a good credit score. The tips below can help you pay off credit and get back to financial health!

1. Create a Budget That Includes Debt Payments

Paying off debt may be easier when you have a plan or a budget written down. Leave enough room in your budget to make the smallest payments toward your debt. Separate non-essential line items such as streaming services from essential items such as groceries to see where you can create some wiggle room in your budget. Only you know what matters to you. If you love your TV, don’t fret: while you probably can’t eliminate essential line items, you may be able to find ways to pay less or to cut back on them.

When creating your budget, consider what your financial goals are. When do you realistically plan to pay off your personal loan or student loan debt? Calculate how long it will take to pay off debt based on the smallest to largest debt payments each month. If you don’t reach your goal, you may need to figure out a way to pay your debt payments by increasing them.

2. Pay More Than the Minimum Payment Each Month

If you have $30k in credit card debt, you need to make significant payments toward your bill or your average credit card debt will continue to multiply. This means paying more than the minimum payment every month, and ideally more than what you added to your statement in the previous month.

When making monthly payments, especially with balance transfer credit cards, always remember that these payments often include only credit card interest. When you are making the minimum payment you are not repaying the principal — you are just paying interest. To significantly reduce how much money you owe and pay off credit card debt faster, you must increase the payment you pay each month.

If you are serious about paying off your high credit card debt, pay as much as your budget allows each month. The lower your principal, the lower interest rate you’ll likely pay and the sooner you will repay your debt.

3. Prioritize Υour Debts

List all your debts, including interest rates and minimum payments. Prioritize paying off high-interest debts first (debt avalanche method) to save on interest, or pay off the smallest debts first (debt snowball method) for better terms, quick wins, and extra motivation.

Whatever you choose, have a clear picture of how much you owe so you know exactly how to get rid of $30k in credit card debt.

4. Increase Your Income

Look for ways to help you increase or boost your income, such as taking on a part-time job, freelancing, or selling unused items. Use any extra income exclusively for debt or mortgage repayment.

5. Cut Unnecessary Expenses

Review your full monthly expenses and identify non-essential costs that can be reduced or eliminated. Sometimes we are prone to impulse buying, thus affecting our credit card balances. If you can discipline yourself, then you can redirect these savings toward your debt.

6. Use Cash When Possible

Now that you’re paying more than the minimum payment each month, try to cut down on increasing the principle of your credit card debt by using cash. Your interest will still continue to increase but at least the principal won’t be increasing as well.

Cash can also be helpful in cutting down on debt because it’s easier to see where your money is going. You physically have to provide the payment for your purchases with cash, decreasing the ability to go over budget in a single shopping trip. Make sure you only take what can fit into your budget.

7. Stay Patient and Motivated

Paying off $30,000 in debt is a significant challenge that requires time and persistence. Celebrate small victories along the way and stay focused on your long-term goal. Many people balk at repaying such a debt, which feels quite daunting. So, the most important answer to how to get rid of $30k in credit card debt is simply to remain motivated and focused on your debt relief target.

8. Find a Debt Settlement Company

If you are over $30k in credit card debt, it may be more than you can handle through do-it-yourself efforts. If you’re not making progress on your own personal finances, contact a professional debt settlement company such as ClearOne Advantage. Unlike debt consolidation loans, you don’t need a good credit score to qualify for debt settlement. While you can go through debt settlement on your own by contacting your creditors yourself, professional debt settlement companies have a lot more experience and will often negotiate a better discount for you.

For example, our ClearOne Advantage Certified Debt Specialists may be able to negotiate your debt down to 75% before fees. While you are in the debt settlement program, you will have one monthly payment that you make into your savings account to be used toward settlements on your enrolled debts. You will no longer have to keep track of multiple credit card payments.

Looking for other financial strategies can also be helpful. Balance transfer cards can help by offering a low-interest introductory period, which may reduce your monthly payment significantly. These transfer credit card options are useful for managing high-interest debts. For individuals with poor credit, seeking loans for bad credit may be an option, though these typically come with higher interest rates. You may also leverage your home’s value through a home equity loan, which can provide a lower interest rate compared to other unsecured debts. Review other areas of your finances as well, such as your life insurance policy, for comprehensive coverage.

In many cases, a professional debt management program may be your best debt payoff option for finding financial freedom, especially if you have $30k or more in credit card debt. Contact one of ClearOne Certified Debt Specialists at 866-481-1597 today to discuss your situation and get a free savings estimate.