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Credit card debt can be worrisome, as it seems to accumulate month after month. Paying down the debt and getting rid of it quickly are essential to letting go of the stress and letting go of the debt.
1. Make more than one payment a month.
Did you know that paying the credit card twice a month, rather than once a month can decrease the interest that you will pay towards the debt by up to thirty percent? Even if these payments are the minimum payments due, they can drastically decrease the debt that will be faced into the future. Take into account when payments are due each month, if payments are due on the fifteenth of the month; create a payment schedule that allows a payment on the fifteenth and the first of each month. This is perfect for those who have become accustomed to paying only the minimum payment, as it can help to pay double that with the sacrifice of a couple meals out each month.
Alternative to this payment plan, pay off one credit card at a time. Of course, the minimum payments should be maintained for each account, but pay extra towards the highest credit card each month. Use this repayment method to save on interest payments throughout the repayment process. If your debt repayment budget is $500.00/month; pay the minimum payments on three credit cards, and use all of the extra payment towards one credit card, rather than dividing it between the four. All credit card debt is not equal, and it should not be treated as such.
2. A second job isn’t the worst thing in the world.
When trying to pay debt quickly, it is essential to create an increase in the amount of money which can be used to pay outstanding debt. Did you know that taking on five to ten hours of overtime, or a second job per week can help to pay credit cards up to fifty percent quicker, depending on the amount of the balance?
3. Get lower interest rates.
Contact the lender and lower your interest rates! Lenders are available to negotiate interest rates with every single customer. Simply make a phone call, or visit your local lending institution or Credit Card Company.
4. Keep your credit rating high.
Credit ratings determine the interest rate that banks and other lending institutions offer you – maintain minimum monthly payments and ensure that all payments are paid on time. Did you know that missing even one or two deadlines for payment could mean an increase in interest rate of up to ten percent?
5. Transfer your balance to a card with lower rates.
Lastly, find a new credit card which offers a balance transfer introductory interest rate of 0%. This can save up to twenty percent in interest rates and comes with fees as low as 3%. Most often, this gives the credit card holder a year to pay the debt interest free!