Posted on August 23, 2018
If you’re at that stage where you’re seeking strategies to pay off your credit card debts, then you’re probably frightened. It also probably feels like a debt cloud is hanging over your head. Well, if it helps, you’re not the only one. Stats prove that one in every three Americans does not completely pay out his balance on his credit card from month to month.
If there’s no point crying over spilt milk or maxed out cards, then what you need is a “solution”. And that solution is what we have come to proffer today.
Below are some of our best tips for paying off your credit card debts fast (spazzola asciugacapelli):
1. Destroy your Credit Cards: Yeah, literally. Okay maybe not destroy, destroy, but take them out of sight so you’re not tempted to keep using them. Until you have paid off your debts, you have no rights to even see them, okay? For now, pay with cash, a debit card, or use Paypal. Anything but them credit cards.
2. Prioritize: Arrange the debts in order of priorities. Naturally, mortgage and car payments will top this list but hey, priorities differ from person to person. After doing this, you can clear your debts in two ways. You can start with the big ones, i.e. those with the highest interests (advised). Or, you could begin with your cards that have the smallest balance first.
Here’s how to do the latter option:
You can do this by paying off the smallest card with spare cash. And then that minimum you’d have paid on that small card, use it to pay for the next smallest card. You should also add any spare cash you can get to get that debt settled fast. By doing this, you’ve freed up another monthly payment that you can use to settle the next smallest card debt. Do you get the picture?
Finally, once you’ve successfully paid out the debts on one credit card, destroy the card and its account. You only need one credit card, by the way.
3. Use your Savings: Yes, your savings. Whatever interests you’re getting from your savings account is certainly nothing to be compared to the crazy interests that are piling up on your credit card debts. Besides, didn’t you set up that savings account for emergencies? Except you’re saving for something major like vehicular repairs, consider your credit card debts an emergency because they are a huge one (phon da viaggio).
4. Debt Consolidation: So, in essence, you’re combining your debts so that all your high-interest balances compress into a single low-rate one. And there are two ways to go about this
Thanks to such a thing as a low balance transfer rate, you can move your debt off your high-interest cards. This rate is usually between 3 to 5%, though, but what you save at the end of the day is certainly going to be a lot more than the transfer fee, we can tell you for free.
An equity in your home could also help. Home equities usually offer a much lower rate than cards in general but then there are closing costs. However, on the bright side, equity interest payments are most times, tax-deductible.