Credit
November 29, 2018

How to Pay Down Credit Cards Faster

Simple. Thrifty. Living.

So many families are suffering with insurmountable credit card debt across the nation. In fact, 69% of Americans have at least $6,000 or more in outstanding credit card debt. This has resulted in countless families seeing financial solace and relief via debt counseling and consolidation. However, many more have defaulted on their credit cards, as well as file for bankruptcy. If you want t stay out of the red and avoid these scenarios, there are several ways to pay down your credit cards faster.

Most people end up in credit card debt due to lack of finances or financial security. However, most forget that every time they use credit cards, these are loans that have to be paid pack in full. Failure to pay back loans in full result in additional finance and interest charges each month. Based on the amount of your outstanding debt, you may be paying monthly minimums that only go towards finance/interest charges – and not the principal. With this in mind, here are some suggestions from industry-leading credit card repayment specialists:

  • Pay off your high interest credit cards first. Contact your card companies with the highest APR – interest rates, and see if they are willing to lower them. You can also work out a deal with them to lower your outstanding balance if they are flexible enough.
  • To accelerate payoff, calculate and organize your credit cards – ranked from highest interest rate to lowest rate. Try not to use any of the cards while in repayment, and simply use your checking account/debit card for everyday expenses.
  • You can also transfer some or all of your debts to one credit card. This should be the card with lowest interest rate. However, make sure you have enough remaining credit to facilitate any balance transfers. Here are some of the best balance transfer cards.
  • You should also pay more than the minimum each month – even if it’s a few dollars more. This strategy reduces your balance and helps you off your credit card debt faster.

You can also accelerate credit card debt payoff by making your monthly payments on time. This will avoid late charges, while improving your credit history and rating. The most important aspect of credit card repayment is not to add any new debt! This means rejecting offers to increase your credit limit, along with offers for new loans. Similarly, stop using your credit card no matter how tempting or enticing it is every month.

If you are looking to improve your credit score as well, paying off your credit card debt will be a big help. You can also use one of the many credit repair companies to help you.

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