Did you know that if you only make the minimum payments on your credit card balances that it can take years for you to pay off your debt? If you are late with your payments, the time it takes you to pay off your debt can be doubled! Paying off your debt as soon as possible will actually save you money in the long run by reducing the amount you pay in interest.
Here are ways to help you pay off your credit card debt sooner:
Pay Off One Card at a Time
If you are already behind on your credit card payments, the chances of doing further damage to your credit is fairly minimal. Rather than making minimum payments to all of your credit cards, pay off the card with the highest interest rate first.
For instance, if you are paying $25 a month to five credit cards, take that $125 a month and use it to pay off the credit card with the highest interest rate. When that credit card is paid off, use that $125 to pay off the card with the next highest interest rate. Keep working your way through your credit cards in this manner and you can be debt free in just a few years.
Don’t Rack Up More Debt
If you have fallen behind in your credit card payments, make sure that you aren’t adding to your debt load. Stop using your charge cards and concentrate on making your purchases with cash. If you don’t have the cash to purchase the items you want, you’ll simply have to go without.
Make On-Time Payments
One of the quickest ways to see your credit card debt spiraling out of control is to make late payments. Not only will you owe last month’s payment this month, but you’ll owe additional fees by way of late charges and additional interest .If you couldn’t afford $25 last month, how are you going to be able to afford close to $100 this month? Make sure that you make at least the minimum payment each month!
If you can afford more than the minimum payments each month, pay as much as you can. By paying more than the minimum you’ll reduce the overall amount of interest that you owe. You’ll also find that your debt is repaid at a faster rate than you expected.
Consider transferring the balances on high interest cards to those with lower rates if you are able. Cards with high interest rates can take years to pay off. By transferring your debt, you’ll not only see a reduction in interest rates but you’ll pay what you owe sooner than you would have otherwise.
Freeze Your Cards
When you have paid off a credit card, put it in a glass of water and stick it in the freezer. Don’t be tempted to close your accounts; this can often have a negative effect on your credit score. Instead, render the card unusable. Doing so will ensure that you have to give serious thought to using it when you want to make a purchase.
There are ways that you can get out of debt faster! If you follow these tips, you can have your credit cards paid off in just a few years time. By paying more than the minimum or paying off one card at a time, you can cut the amount of time it takes to become debt-free in half!