2021 is here – It’s time to get rid of your credit card debt

2020 is finally over. The much awaited 2021 has arrived. Many people are calling 2021 as the year of hope and victory. If you have credit card debt, then this is the year to pay it off and get a victory in your financial life.

It’s easy to say that you want to get a victory over your credit card debt but the task is hard. But if you don’t accomplish this tough task in 2021, then you have to be ready for the following consequences:

  •  Texts and emails from debt collectors
  •  Debt collection calls every week
  •  Low credit score and a bad credit report 
  • Lawsuits and judgements

While the debt payment process is exhausting, this post will give you some ideas  to pay back your creditors in a less painful way. Here are a few of them. 

1. Snowball your small debts: Make a list of your debts based on the amount you owe. Target your small debts first. Pay more than the minimum amount on the smallest debt every month to kick it out fast. When you pay off your smallest debt finally, you feel happy and motivated to kick out the other debts as well. 

2. Consolidate your high interest debt: Consolidate your high interest credit cards, payday loans, and other unsecured loans with a consolidation loan or a program. Borrow a consolidation loan only when it comes with a low interest rate. Otherwise it is best to enroll in a consolidation program or take advantage of balance transfer credit cards. 

3. Settle debts with high outstanding balance: The pandemic relief programs are over. You have enjoyed a lot when it comes to skipping payments on your credit cards, student loans, and other types of debts. The COVID-19 relief programs allowed you to skip payments without hurting your credit score. But that option is not there anymore. So, if you have outstanding balance on your unsecured loans,  then negotiate with your creditors and settle them to save money. 

4. Give a frugal shape to your lifestyle: A frugal lifestyle is a must in the current situation. Make it your goal to save money every month. Live on homemade meals and a minimalist lifestyle in 2021. Create a budget to cut down expenses in areas where you have a tendency to spend a lot of money. 

5.  Generate multiple income streams: It will take some more time to recover the economic condition of the country. The job market has not yet stabilized. People are still out of work. So, it is better to not depend solely on your 9 to 5 job anymore.  create multiple income streams in 2021. Work as a freelancer, give online tuitions,  participate in surveys, rent out your unused rooms, and so on. 


A new year has begun with new hope and prayers. I wish the very best to all of you.  Stay in good health. Focus on creating good causes and building a strong financial house in 2021.