Financial Help

5 Proven Tips for Clearing Credit Card Debt Faster – Start Today!

Clearing Credit Card Debt

Most people find their credit card debts overwhelmingly burdensome but with the right strategies, one can wash them off their backs and be back on track with one’s finances. If you struggle in paying off such bills, here are some of the top five tips that could help you in tackling and eradicating such debts.

1. Pay More Than the Minimum

Pay the required minimum amount on your credit card. Repaying defaults for credits is not an easy pathway, as it takes ages to completely pay for them. Minimum payments will generally cover the interest, leaving a tiny portion for the principal. It will take quite a while to work down your balance to an average amount, and in the long run, you will find yourself paying huge sums in interest.

Tip- This will make you pay up your debts quickly while saving interest because you will be paying more than the minimum amount every month. Small additional payments will also speed up paying off the debts. For example, “Minimum payment is $50, try to pay $70 or more. That extra $20 will go directly to reducing your balance.”

2. Use the Debt Snowball Method

This is another best-known technique to utilize when it comes to the clearing of credit cards. It favors paying all but the smallest debts at standstill as you pay off that smallest debt. Then you move on to the next smallest debt, and so on.

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It works because it gives you a fast “win” that can be motivating. Paying off one debt fuels the momentum you need to keep going. Plus, getting rid of a debt may be just the confidence boost you need to keep going.

Advice: The first thing you do is write out all your credit card debts in order, from smallest to largest. Pay off your smallest first, and as soon as it’s gone, take that payment you were giving it and attack the next smallest.

3. Transfer Balances to a Low-Interest Card

When you have a lot of credit card debts with high interest rates, it’s best to transfer your balance to a credit card that provides a lower interest rate so that you could save yourself a significant amount of money. Many of those credit cards have a 0% introductory APR on balance transfers for a limited period (like 12-18 months). If you transferred your balance in a certain period, it meant you won’t incur any interest in the balance you transferred, so it will help you focus on paying off your debt without worrying about the interest-rising.

Tip: Search for a credit card that offers the longest 0% APR duration and no balance transfer fees. Make sure to pay off the entire balance transferred before the promotional period ends; otherwise, the remaining balance will accrue interest at the much higher standard rate after the promotional period ends.

4. Consolidate Your Debt

If you have numerous credit cards having different balances and if the interest rates are quite high, it is better to have them consolidated into a single loan and ease the management. Consolidation of debt means merging all debts into one loan with lower interest rates. In other words, you will pay only one monthly payment rather than multiple credit card payments.

Tip: Get a personal loan or a consolidation credit card for debt consolidation. But make sure the new loan has a lower interest rate than the combined interest rates of your existing credit card debts. This will save you more in the long term.

5. Avoid New Debt

While you will be paying your credit cards, it does not mean that you should incur other debts. The temptation to keep using the credit cards is strong while one is in the process of paying debts. It is only going to slow down progress that adding more debts is going to do.

Tip: If you are hard to resist from using your cards, consider putting them in a block of ice (literally or by placing them in an obscure location). Also, create a strict budget on your spending and follow it. Only charge what you can settle immediately so as not to build more debts.


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Braj Verma is a resident of Rajgarh in Madhya Pradesh and is a content writer and freelancer by profession. He has a degree in Political Science from Barkatullah University, Bhopal. He has expertise in subjects like credit cards, banking, loan, insurance, political analysis and digital marketing.

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