Who does not have credit card debts? However, there are two kinds of credit card holders. One group properly manages their finances and pay their cards on a regular basis. Another group consists of people who are prone to make financial decision mistakes that cause them to end up with multiple credit card debts that are neck high.
How do you tackle such problems? What are the faster ways to pay off credit card debt?
Pay More Than Minimum Amount Due
The usual way of handling several credit card bills is to try to pay them off one debt followed by another and you go on and pay what’s due until everything is paid off. Usually, people will settle the smallest balance first and use the money originally for that to help pay off the other cards.
One of the faster ways to pay off credit card debt is by paying more than the minimum amount required. When you look at your statement, it will take ages before you pay off one card if you only pay the minimum. When you pay more than usual, you will end up paying less interest rates and you will be able to chop off from the principal amount until such time your debt is gone.
Credit Card Debt Consolidation
With credit card debt consolidation, you basically combine multiple credit card debts into one single account. Instead of paying several creditors, you will only owe money to one lender. Take note that the debt is not gone but you have restructured it so the interest rate can be lower and so that you have a more affordable monthly payment.
You can do credit card debt consolidation several ways.
You can get a new credit card and transfer all of your credit card debts to that new account. Take note though that balance transfers are not really good for your credit report. This can be a good move if you want to get rid of high-interest rate credit cards.
Another way is you take a personal loan and use the funds to pay off your credit cards. This is a good move if your credit score is still good and creditors are still able to give you competitive interest rates. Get the shortest term possible so you do not end up dealing with interest rates which in the end may spell more money out of your pocket.
Just like a personal loan, homeowners can also take out some value off their home. Through equity line of credit, you will have some funds to settle several credit card debts.
When you consolidate your credit card debt, you need to make a conscious effort to limit your spending and avoid piling up new debt.
Fix Your Budget
The true secret to faster ways to payoff credit card debt is by dropping all of your bad financial habits. You should fix your budget so you live way below your means. See areas of the budget where you can cut cost and use that extra money to pay off your debt.
Our team at Credit Card Debt Consolidation outlined some practical tips to help you find faster ways to pay off credit card debt.