How to Pay Off Your Credit Card Debt Faster

How to Pay Off Your Credit Card Debt Faster

Credit cards seem like a good idea at first. You can go cashless shopping, and you can purchase expensive items without having to pay the whole amount upfront. However, paying off credit card debt can be tough, especially if you find yourself swimming in huge amount of debt.

If you’re in this predicament because of the holidays and your purchases last year, here are some effective way to pay off your credit card debt faster:

Pay more than the minimum

You may have been paying the monthly minimum, but it’s actually better to pay off more than the monthly minimum on your credit card. If you have any extra money, try to put it towards your credit card. Paying even a little extra every month can help reduce debt faster.

Pay off the highest interest rate first

If you have multiple credit cards, you may want to tackle first the one that has the highest interest rate. It’s more effective to prioritise the highest interest rate card rather than tackling it all at once. Once you’ve finished one credit card, you can then jump off to the next one then gradually pay off one credit card at a time.

Do a balance transfer

A lot of financial institutions offer balance transfer where you can transfer an existing credit card debt to a new credit card that has a lower interest rate. This can save you money on interest repayments. Additionally, a balance transfer can keep you on top of your balance and repayments, and can help you pay off your debt a lot sooner.

Use your emergency fund or savings

It might be hard to accept that you need to use up your emergency fund or savings to pay off credit card debt, but it just make sense to consider credit card debt an emergency because it has high interest rates which can increase it over time if the balance is not settled early on.

Consolidate all your debt

Consolidating your debt can be a good idea if you have large balances on multiple credit cards. This can make it easier to pay off your debt, since you are making only one single repayment each month. You can consolidate all your debts in two ways, either through a consolidation loan or with a balance credit card offer.

 
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