5 Ways to Pay Off Your Credit Card Debt

Your debts are piling up and there seems to be no hope to reduce them anymore. Every time you swipe your card, you aren’t sure if it would be accepted or not since you aren’t sure if you have any balance left on your Credit Card. But ignoring your credit card bill reminders won’t make the whole problem vanish. It is high time that you take an action and clear out your debts. But how to do that?

Here is a systematic approach to making sure that you clear off all your credit card debts in no time:

Pay minimum debt amount on all your credit cards

The best way to ensure that you don’t end up with a late payment remark is by making a minimum payment on all your credit card bills. If you don’t have enough money to completely clear your dues, then you can at least pay off the minimum dues for that month and buy some more time for yourself. This will ensure that you aren’t charged any late payment fee and that your Credit Report is free of negative remarks.

Pay off the whole debt in one go

Another amazing way to pay off your debt would be to clear the whole amount in one single go. If you have enough money to clear the bill then don’t wait, just pay the whole damn amount and clear your credit card bill once and for all. This way at least you won’t have to worry about monthly payments anymore and your Credit Score will get a great boost.

Transfer your credit card bill to a low-interest credit card

If paying off doesn’t seem like a good idea to you, then there is another way to make your debts easier to pay. You can transfer the bill from a high-interest credit card to a low-interest credit card. This will clear up you’re on Credit Card and boost up your score and you won’t have to pay high-interest rates on it anymore. Basically, it is a win-win situation. As suggested by one of the best credit repair firms like Lexington law, This will help you improve your credit score while you’re at it.

Use your savings accounts to pay all the bills

If your bills and debts are way too high then I am sorry but you really have no option apart from breaking your bonds and taking money out of your savings accounts to pay off all the debts. It might not feel good to do this and it might be a little foolish too but if you want to save your credit score and not burden yourself with even more debt, then you need to use your deposit accounts to pay your debts once and for all.

Target just one debt first

If you are one of those who carries more than 1 credit cards, then one of the best ways to pay off your debt would be to clear your dues on your one credit card first. Choose a credit card which dues you want to clear up and then pay the whole debt off in one go. You can choose to pay a high-interest due first and then later you can pay your other credit card debts. The key here is to clear one credit card at a time.

Constantly Planning to Get Out of Debt

Having a constant plan to get out of debt will help you keep your finances in order.

When you keep your focus on your debt and money situation, you are able to better control it.

Most advisors will tell you that you need to be debt free. Yes, that is the ultimate goal, but for many people, it isn’t exactly reality. There are situations, like buying a home, in which you have to accept debt.

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There is good debt and bad debt. Good debt is debt you can afford and bad debt is debt you can’t afford. That’s all there is to it. If you can afford your mortgage, car payment and RV payments, then it is alright. If you can’t, then it isn’t good debt.

When it comes to credit cards, however, they are bad debt, regardless. You will eventually reach a point where you can’t afford them. That is almost guaranteed.

The key is to constantly work to paying off yoru debt. Start with your credit cards and high interest loans. Focus on paying off the cards with the highest interest rates to start with. This will save you money in the long run.

Once you have all of your credit cards and personal loans paid off, start working towards your autos and student loans. I like to focus on what has the lowest balance to pay off first. This helps you knock things off rather quickly — adding to your gratification. If everything is about equal in balance and interest rate, I pick the highest monthly payment.

When you pay off a high monthly payment loan, you free up more money to put towards the next debt.

When you have your cars and student loans paid off, the next thing you have is your mortgage. You can be working on your mortgage throughout the process as well. By adding as little as $100 a month to the average mortgage, you can knock several years and thousands of dollars off the mortgage.

That’s the overall game plan. But be aware that it can change.

For example, you may find that you are in a situation in which you must have a new, reliable vehicle. You don’t want to spend your emergency savings. The only debt you have is your mortgage. You are able to afford the monthly payments, yet plan to pay it off as quickly as possible. Then go ahead and finance a reasonably priced vehicle. Transportation is very important for work, school and other obligations.

What you must do is adapt your debt-reduction plan around the new car payment. Although you have added debt, it doesn’t mean that you still can’t work to be debt free.

Financial management is built around the idea that you must be flexible and able to adapt to the situation with smart choices. Too many people believe that there is a right way and a wrong way. That isn’t necessarily true.