Want to get rid of Credit Card debts? It is never one rule applies to all principal. There are multiple ways through which you can come out of your credit card debts. The best suggestion is to get rid of the debt as soon as possible and close your accounts. It is always advisable to spend within your budget. Nevertheless, if you have overspent on your credit card(s), doesn’t mean that’s the end of the world for you; you still have many options to pull yourself out of debt. Let’s explore some.
Top Three Tips to Erase Credit Card Debts
- Close Your Debt With All Resources Possible
Credit card debt is the bad financial situation for any person. Get aggressive here. Attack all the resources and means that is possible to get out of the debt as early as possible. Use all the savings that you have to close the debt. Stop using credit card completely. Only rely on the cash for your essential expenses. Write down a list of all the debt that you own, minimum payments on each card and order of interest rates on each card. Use the debt snowball method to get out of your debt one by one. Use all the extra money that you earn to close the debt with the highest interest rates. As an alternative, you can also close the loan with the smallest amount first, before moving on to the highest debts. If you get a raise at work, use it to settle the maximum interest bills.
- Get the most out of balance transfer credit cards
Balance transfer credit cards offer 0% annual interest rates. So the charges are just the money that you transfer to it. It has to be paid back within the promised tenure. The balance transfer cards help you to transfer the debts from a card onto them for a little fee say 2-3%. Now you get sometimes when you need not pay any interest. You can now look or search for ways to come up with some money for the debts that you have transferred now. One important thing to know before going for this option is that, once this interest free time period is over, you will be charged with very high interest rates on the transfer card balance. Suppose you are given 12 months of 0% interest rate on your balance transfer card, make sure, you save up money and pay the debt within 12 months. Otherwise, you will face difficult times with settling more interest rates. Do not use this balance transfer card for any purchase. You must be very strict in using that card as your debt payment card that needs to be settled. This 0% balance transfer card helps you in a comfortable repayment option instead of going for a loan. Aim to pay off your maximum on your balance in this card, so that you can clear all the balance before the 0% interest period time ends.
- Get Credit Card Consolidation Loan
Paying off the credit card debt is the most difficult thing because the interest rate is very high said 16.84%. In such unmanageable cases, get a credit card consolidation loan or a personal loan that has much cheaper rates than your credit card debt. The fees may be light that you can manage to pay every month. A personal loan is also sanctioned for customers with low or bad credit. However, you must be sure that you can close the personal loan with proper planning before the end tenure by making the proper monthly payment at the right time.