Repay Your Credit Cards Quickly
There are few things in life that can cause as much long term strain and pressure as financial worries. Failing to keep on top of finances is not an option. There are certain steps that you may wish to take to make this job that little bit easier and have fewer things on your mind to stress or worry about. One of these pieces of advice will usually be the repaying of your credit cards as quickly as possible.
Credit cards are extremely useful and convenient, but as we all know, they come with interest rates and in this sense are a very expensive tool to be using. This is particularly true if you are not paying back your full outstanding balance each month. It is advisable that if at all possible, to keep a zero balance on them. For many, this is easier said than done. For most people, earning the money to repay the card is not really the problem. It is more that they simply keep using the card and spending the money. They continue to charge new purchases even though they cannot pay them off at the end of the month.
Set a Plan
If you do want to clear your credit cards, one of the first things you should do is set up a direct debit or standing order to pay off a certain amount each month. This way you will always pay your bill on time and will not be subject to late payments. The amount you set for repayment level should be higher than the minimum required repayment. Keeping the payment at the minimum will not pay off the credit card balance very quickly at all. In fact, it can take upwards of 30 years to pay off a card making only the minimum payment.
Once you have set a monthly repayment amount and are satisfied that it is high enough to repay the credit card balance in a reasonable time frame, what you should next need to do is stay strong and discipline your spending. This means refraining from using the card. Instead, wait until you have cash to buy something you need or want. It is this discipline that will be the difference between clearing the debt and carrying it into the future. If you find it too difficult, consider leaving the card in a safe place at home or even cutting it.
Remember do not just keep to a minimum payment, this is a sure fire way to get further into debt. By paying an extra $10 each month your total credit card interest will drop substantially. Credit Card Companies set their minimum payment requirements too low, many at just 2%. To many consumers fall into the trap of thinking minimum payments are adequate.
Once you have paid off one card, use the monthly payment to start paying off another card. This is sometimes known as a “debt snowball”. By applying the payment you used to send to your now paid off card to another with a balance, the second balance will fall even faster than the balance on the first card. Continue doing this until all of your cards are pad off in full!
By taking heed of our advice you will soon find yourself clear of credit card debt.