The Best Ways to Quickly Pay Off Credit Card Debt

Eliminating your debt is a challenging objective that calls for preparation and effort. Living debt-free can reduce stress and free up money for financial goals you might not be able to achieve right now, even though it isn’t always simple. So what are some methods for quickly paying off debt?

Never Pay the minimum amount due.

Making the bare minimum payment on your credit card balance is not a successful debt relief method. In many cases, the minimum payment barely covers the interest that has accumulated on the loan, and paying it off would scarcely, if at all, reduce your principle balance. Fortunately, MSN Money Central notes that some credit card firms are raising their minimum payments to assist customers in paying off debt more quickly.

However, interest accrues on your balance the longer it is outstanding. So, in order to ensure that the real debt you owe is being lowered and not just the interest, you should think about making triple or more the minimum payment.

Reduce Your Debt Before You Spend Any Money on Pleasure

You must put your debt reduction or elimination efforts ahead of all other pleasure-related expenses if you want to be successful. A smart move is to cancel your present card so that you won’t be tempted to make additional purchases, and then start methodically reducing your spending in other aspects of your life.

MSN provides numerous suggestions on how to set aside a significant portion of your salary and use the money to quickly pay down your debt. You can save between $30 and $50 per week by bringing your own lunch to work and making your own coffee each morning. By alone, this may provide an additional $200 each month that should go directly toward debt repayment. Consider your regular spending and try to find ways to cut back or eliminate it, always applying the money you save to your debt.

Reduce the Interest Rate

Make sure you have a low interest rate if you intend to start making significant payments toward your credit card debt. A high interest rate merely makes your payment to the credit card company larger and does nothing to help you pay off your debt. Consider calling the creditor and requesting them to lower your rate if you’ve been paying on time.

Consider applying for a low-interest peer-to-peer loan for the amount of your credit card debt if this does not work. With this loan, you can pay off your credit cards and then refinance the loan at a cheaper interest rate. As an alternative, you might apply for a brand-new low-interest credit card and transfer your existing card’s balance to it. Before you do this, examine the balance transfer fees on your present card because exorbitant fees can occasionally make the advantages of this tactic ineffective.

To Sum Up

  • Never settle for the bare minimum.
  • Stop using your current cards for purchases.
  • Reduce your debt before enjoying yourself.
  • Reduce your spending and use the money saved to pay off debt.
  • Take into account using your tax refund to pay off debt.

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