Things to Remember to Pay Credit card Debt Faster

Posted by Divya Kapoor on July 16th, 2019

Credit card debts are a burden. If you don’t pay off the outstanding balance of your credit card, the debt attracts high -interest rates, which become an added burden on your pocket. If you have multiple cards, the total debt becomes substantial. These high debts not only incur high -interest payments, but there are also late payment penalties as well. Existing credit card debts also hamper your credit score, and so it is better to pay your debts faster.

If you are wondering how you can pay your credit card debts quickly, here are some tips to remember –

Spend what you can afford

Before accumulating a substantial debt, try and avoid it in the first place. Though your credit card allows you credit purchases, always spend what you can afford. Make a budget and stick to it. Use your credit card only when you are sure of repaying the money later on. Don’t overspend or indulge in a spending spree because in the end you would be burdened with the dues which would pile up on your credit card application.

Try and consolidate your debt of multiple cards

If you have multiple credit cards and there is an outstanding balance on all of them, consolidate your debt into one. Try availing a personal loan to pay off the total debt of multiple credit cards. A personal loan would have a lower interest rate compared to that charged by credit cards. Moreover, the loan would also make it easier for you to service it. You wouldn’t have to remember the multiple payment dates of different credit cards. There would be one loan and one repayment date which you can remember and also easily pay off.

Opt for EMI conversion

Credit cards allow the facility of converting your big purchases into affordable EMIs which you can pay every month. If, any month, you overspend on the card and shoot up the credit card bill, opt for EMI conversion. The bill amount would be converted into EMIs, and you can pay the EMIs every month without incurring very high non-payment charges.

Opt for a balance transfer facility

Credit cards also allow balance transfer facilities wherein you can transfer the balance of an existing credit card to another credit card offered by another financial institution. A Balance transfer is done for consolidating your credit card debts and also for availing the benefit of low -interest rates offered by other cards. So, if you find another credit card which offers low -interest rates, transfer your existing credit card debt to that card and reduce the interest burden. As the interest burden reduces, you would be able to pay off your debts faster.

Pay high -interest debts first

This is relevant when you have multiple credit cards and outstanding debts on all of them. Check which credit card charges the highest interest rate and pay off the dues on that card first to avoid additional interest outgoes. Then choose the card with the second highest interest rate and so on. Pay off one card at a time and reduce your debts.

Through these methods, you can pay off your credit card debts faster. Analyze which option fits you the most to get rid of your credit card dues.

SEE ALSO: Prevent Credit Card Fraud with These Tips