Accumulating credit card debt can be pretty stressful. Yet if you find yourself spending quite a bit on your credit card, this can quickly spiral into a huge sum that you may struggle to afford repayments for.
As horrible as this may feel, you should never be ashamed of feeling weighed down by credit card debt. Fortunately, there are a couple of simple methods to help you pay off your credit cards.
If you don’t know where to begin looking for these methods, you’ve come to the right place! This article will point you in the right direction.
Use A Balance Transfer Credit Card
If your credit is looking good, you may want to apply and use a balance transfer credit card. These are a special type of credit card that is designed to receive any outstanding balance from one or more additional credit cards.
It allows you to see all the money that you owe on a credit card, and will likely be much easier to set a plan in motion to repay everything quicker and more efficiently.
It will generally have a low (or even zero) percent interest charge over a set period. The balance transfer time frame will also usually hover around 12 months, giving you enough time to pay off the credit you owe without extra interest on top of this charge.
Rework Your Monthly Budget
You’ll never be able to hit financial goals without a strict budget. After all, if you’re unable to effectively plan where all of your money will be going, you will never find out where it has all gone.
The solution here is to get yourself on a budget or simply rework your current one. You can begin by stating your total income (including side hustles if applicable) and then writing down every single monthly expense.
Once your expenses are calculated, subtract them from your monthly income. You should then separate whatever money you have left over and set up a dedicated direct debit that is within your budget to pay off your credit card expenses each month.
Evaluate Your Spending
It’s time to be a little bit radical with your spending habits,
One of the quickest and most effective ways of paying off credit cards faster is to stop and evaluate all of your monthly spending each month. This includes transportation, entertainment, groceries, and utilities.
What extras can you live without for a couple of months? Do you really need all six of those streaming services you’re subscribed to?
You should also always stay up to speed with your credit card statement to keep track of your spending. The same goes for your debit card. Doing so will keep you in control of your purchases.
Stop Using Your Credit Cards
One of the simplest ways to pay off your credit card quickly is to stop using the card as often as you currently do. If you keep adding to the balance then you will always actively struggle with the debt.
The solution is to make sure you stop using your credit card to cover the cost of purchases that you cannot immediately repay. If you are far too tempted, don’t take your credit card out with you when you go shopping.
In the worst-case scenario, you can also destroy your card. This will ensure your credit card debt doesn’t rack up and remains at a manageable level.
Consolidate Your Debt
If you prefer simpler things, you may want to consider consolidating your debt onto a single card or even acquiring a debt consolidation loan. Rather than trying to manage multiple bills each month, you’ll just be left with a single bill to manage.
You must remember that debt consolidation might come with additional fees.
On the other hand, there are some credit cards out there that offer an introductory period of 0% APR when you transfer any balances to the card.
Look For the Card With the Highest Interest Rate
Many people feel overwhelmed by the overall goal to pay off their credit card, especially if the balances stretch across many cards. This problem can be simplified by identifying the credit card with the highest overall interest rate.
By paying off this balance first, you will have the chance to save money on the interest. You can then use this money to pay off other credit card balances quicker than you otherwise would have.
Try To Pay More Than the Minimum Balance
If you’re in real financial straits, you only need to pay off the minimum balance on your credit cards except for the one with the highest interest. Doing this will help you to keep repayment costs low and avoid late fees.
If it is financially possible, however, you should aim to pay off more of your credit card. This means paying the majority of your credit card balance each month to officially lessen the overall amount of interest you need to pay.
By paying only the minimum balance on your card, it will take considerably longer to pay off your entire bill.
Consider More Drastic Measures
If you are looking for how to pay off credit cards faster, you may sometimes need to consider some more drastic measures. You may need to sell an asset such as items around your home that you no longer use, or a second car.
These proceeds can then be added to your outstanding debt and will work to pay off a large chunk of the credit card debt in one transfer.
If you don’t have any items to sell, you can also consider using your savings to pay off some of your credit card amounts. Make sure to keep some money in your savings to cover yourself in case of an emergency.
These are the main ways you can use to pay off credit cards faster. We’d recommend filtering your options and finding the one that best suits your needs so that you can pay off any outstanding debt quicker.