5 ways to pay your credit card debt.
...paying off your debt is a priority
Ditch the debt and pay off your credit card.
If you are focused on improving your credit score, paying off your debt is a priority. Start by focusing on revolving accounts such as credit cards first because this will make the biggest impact on your credit score.
There are 5 key ways you can pay off your credit card debt:
1. Pay the most expensive card first
If you want to get out of debt as quickly as possible, rank your debts from the highest interest rate to the lowest interest rate. Pay the minimum monthly payment on each account but try to pay extra into the highest interest rate account. When that debt is paid off, focus on the second highest, and so on. This is sometimes called the avalanche method of repayment.
2. Consider a balance transfer credit card
If you have good credit despite your debt(which is possible if you’ve been making your minimum monthly payments on time and kept your credit-utilization ratio low) then doing a balance transfer deal with your bank might be something to consider. This means that you will take the debt that was charging you higher interest elsewhere and move it over to your new account instead, effectively getting rid of debt at a lower price. You can do this when embarking on a journey to further better yourself by ridding yourself of hefty debts in the process.
3. Get your spending under control
Sometimes people enter into debt due to unexpected medical or emergency expenses. Other times, the source of debt is chronic overspending which often means you are spending more than you should be or more than you have in your account. The first best step to take would be to gain full insight into how much you are spending and where by making a reasonable budget so as not to fall back into debt again.
4. Get in touch with a debt counseling service for professional help
If you're struggling to stay afloat with your finances and are considering filing for bankruptcy or pursuing debt review, it's advised that you first consider meeting with a debt counsellor. Taking this step on your own could lead to the realisation that you can conquer your debt with a repayment plan.
5. Switch to cash
When you pay with cash you not only stop yourself from accumulating more debt but you also tend to spend less in order to keep up with your monthly bills. And, when it comes down to thinking about money, there's no better way to avoid spending too much than by thinking twice! Make things inconvenient for yourself and you're bound to save a lot more of your hard-earned cash.
If you are suffering from credit card debt, you are not alone. Fortunately, there are many ways that you can pay off credit card debt. If you are suffering from credit card debt, it is important to get help. Ask Credit Health for guidance on how you can eliminate your debt.