Have you ever wondered as to what is the best way to pay credit cards off?
Credit card debt can be in a nuisance when it gets too high. Besides payday loans which are in a different class of their own, credit card debt is expensive.
The average interest rate can go as high as 18%. Therefore it only makes sense to try to pay it off as soon as possible and be debt-free.
I would rather people avoided using credit cards altogether. I, however, realize that in life there could be emergencies that could force people to go into credit card debt.
People get sick. There could be funerals etc.
I also know from experience that it is difficult to get rid of credit card debt. And according to CNBC credit card debt is a big problem in America.
However, with a proper plan, it can be gotten rid off and you can be freed from the slavery of debt.
5 Ways to pay off your credit card debt fast
- Reduce the cost of your credit card debt. To do this you need to transfer your credit card balance to another credit card with a 0% rate balance offer. If this is not possible you can go for one with a lower interest rate. The aim is to reduce the cost of your debt.
- Priotize the high interest (most expensive) card first. It is important to first of all, get rid of the high-interest card. Once you are done paying off this credit card you can move on to the other credit cards. While you are doing make sure that you are still paying the minimum amounts for the remaining credit cards.
- Get rid of the lowest balance first. Another way especially where the interest rates are the same is to clear the one with the lowest balance first. This will act as a motivation factor because of the sense of satisfaction.
- Set up a direct debit or Standing order. Setting up a direct debit or standing order will help in making sure that you don’t miss any repayments. You will, therefore, avoid late payment fees as you try to pay off the debt.
- Create a budget if you don’t have one. Creating a budget will help you to be realistic with your goals and to help you meet your goal. The budget will also help you to find areas of your monthly expenses that you can cut and use the savings to pay off the debt.
I hope the ways presented above will help you as you focus on solving this question, what is the best way to pay credit cards off.
If your credit card debt has also affected credit rating, I advise you to read, How to build credit fast.
The tips here can help you to improve your credit rating. It is meant for those with no credit rating but can also help those whose credit rating has gone down.