Managing your credit card debts depends heavily on how long you take to pay them off. After a reality check, you’ve taken ownership of your debt situation and feel the need for its payment in the shortest time possible.
Most of the time, however, you may find it hard to meet your debt payment goal. Luckily, the good news is that you can employ the following insightful strategies to eliminate your debts faster and move to a more vigorous financial life.
Stick to Your Debt Payment Plan
Deciding how to clear your debt is one thing, but sticking to the plan is different. Here, consistency is the rule of the game. It’s best to list all the credit card debts in a specific order and address each at a time.
You can use the snowball payment method whereby you pay off the smallest debt as you move towards the highest one. Also, you can use the avalanche technique to clear the vast and high-interest debts first.
Debt Consolidation
Take the proactive step into debt consolidation. In this, you combine several credit card debts into a single payment through transfer balances, for instance.
Further, you can ask your relatives for an interest-free loan to pay off the outstanding balances fully. Symple Lending states that the approach will keep off hefty interests and prevents debt accumulation.
Ask for Interest Rate Reduction
First, conduct thorough research to assess the reduction possibility before making your request. After confirmation, request the respective card issuer for interest rate reduction by writing or via a call.
The rate reduction stabilizes the debt so you can clear it faster and pay less on the remaining debt balance. Therefore, you’ll do away with your credit card debt in the shortest time possible.
Sign Up for Auto Payments
You can never ignore the expected payment dates, so you must strive to meet them. After a few inquiries with the card issuer, set up an automatic payment schedule online or through the phone.
Here, you agree with your bank to channel money to cater for the minimum payment after the creditor posts your statement.
Auto payments assure consistency and also avoid late payment charges. Further, remember to periodically review your financial report to detect any unauthorized charges imposed on your account.
Add On Your Minimum Payment
The minimum payment is the least money you’re supposed to pay per month. Different card issuers fix a certain percentage of the outstanding balance to serve as the minimum amount.
Ultimately, if you solely rely on this, it’ll drag down your repayment goal achievement, and you’ll pay more. For this reason, Symple Lending advises you to either double or triple the set percentage.
Further, you’ll slash the repayment period to less than half of the pre-calculated time.
Ideally, prompt debt payment positively impacts your credit score, but it can be hard to keep up with. As you stand at the current debt point, strategize on the best option for you to move towards debt freedom.
Make and strictly follow your payment plan as you find ways to reduce the chargeable interest rates. Lastly, improve your spending habits to streamline the selected debt payment strategies.