You might so intensely focus on wiping out your credit card debt that you have not planned on what to do once you are debt free. You want to make your triumph over your debt last. With a few smart financial planning steps, you might not have to worry about card debt again for many years.
Some people might suggest that you get rid of your credit cards, but as Nerdwallet explains, you may have a good reason to hold on to your existing cards. You might not only keep your cards and avoid accumulating new debt, but you could take other steps to help you stay debt free.
Evaluate your existing credit cards
The problem with closing your current card accounts is that you may suffer a drop in your credit score. A credit report measures how much you use your card versus how much credit you have available. Closing your cards eliminates credit lines, which may actually boost your credit utilization and lower your credit score.
Instead of closing your accounts, you could ask your card holder to change the terms of your card to better fit your current financial state. You might ask the card company to raise or lower your credit limit. Also consider checking your card for perks, such as rewards points, that might suit you as you reevaluate your spending priorities.
Other post-debt options
After eliminating your credit card debt, you are free to deal with other balances you might have outstanding, like car loans or student loans. This may help you from falling behind with these debts and eventually pay them off.
If you have little to no debt to worry about, consider putting money away in an emergency fund. Some people rack up major credit card debt to pay for car problems or sudden repairs to their home. With an emergency fund like a savings account, you can pay for unexpected expenses from that and not burden your cards.
