Credit cards are two ways: it can help you and can also destroy you when misused. Once you use your credit card without restraint, you end up getting into numerous debts that seem so overwhelming. And as such, if you have how plans on how to pay off these debts, you are in for serious troubles. There is hope for you. These 5 Quick Tips About Paying Off Credit Card will be of help.
The 5 Quick Tips About Paying Off Credit Card will be of help conditionally. This condition is simply your willingness to apply these tips and the needed discipline. You can avoid these traps and be in control of your finance. Let’s see how.
5 Quick Tips About Paying Off Credit Card
Here are the tips.
1. Pay More Than The Minimum Amount: Paying just the minimum amount is a practice followed by many card holders. The mounting debts as a result of this cause many borrowers to get locked in unending debt spirals. Also remember, credit cards come with a very high interest rate and paying only the minimum due amount is only increasing your outstanding amount significantly at an exponential rate, depending on the outstanding amount.
2. Set Up Your Financial Goals: It’s important to set for yourself realistic goals for paying off your high interest credit cards as well as other types of consumer debt (overdraft, line of credit, vehicle loans). While it is easy to run up balances in a short period of time, it takes time and self-discipline to pay them off. Monitor your progress regularly to help you stay on track and motivated to reach your goals.
3. Focus On One Debt At A Time: Do you carry a balance on more than one card? If so, make sure you always pay at least the minimum on each card. Then focus on paying down the total balance on one card at a time. You can choose which card you target in one of two ways: Check the interest rate section of your statements to see which credit card charges the highest interest rate, and concentrate on paying that debt off first. Or, pay off the card with the smallest balance first, then take the money you were paying for that debt and use it to pay down the next smallest balance.
4. Limit Your Monthly Expenses: 5 Quick Tips About Paying Off Credit Card – Point 4. One way to speed up your debt repayment and get out of debt fast is by reviewing your monthly expenses and looking for opportunities to cut your costs. Start by tracking your spending for a two-week period to become aware of where your money is going (one month is even better).
5. Take advantage of holiday period: The best way with which you can manage your cards is taking maximum advantage of the holiday period. Depending upon your bill cycle and the date you make a purchase, you can enjoy up to 50 days’ interest-free period on your card. So if you are facing any temporary financial crunch, make planned buys on your cards to enjoy maximum holiday period and to avoid interest payment.