Although the new provisions of the Credit Card Accountability, Responsibility and Disclosure Act came into effect in 2009, the US consumers are all drowning in high interest credit card debt. The number one question that is asked by most credit card holders is how to tackle the large number of e-mails from the credit card companies. Well, as you know that ‘save big’ is always a formula when it comes to paying off your credit card debt sooner. If you’re someone who is tired of carrying over balance from one month to the other and is looking for ways to pay off credit cards fast , you must educate yourself on some important points. Apart from saving a large amount of money, there are some smart tricks, which when adopted will help you lead a debt free life sooner. Have a look at some such points.
Pay more than the minimum amount: If you have been paying just the minimum monthly payment, you’re perhaps making a big financial mistake. Though the banks tell you not to pay anything more than the minimum monthly payment on your cards, you should be aware of the fact that this is just a strategy that they use to be able to drain off money from your wallet in the form of accumulated interest rates. Therefore, avoid this and pay something more than just the minimum monthly payments that is already scheduled on your multiple credit cards so that you can get out of debt sooner.
Pay your debts in the right order: Most people ask the financial experts about paying the high interest debt first or the smallest principal debt account first. Well, though it is financially mush easier for you to start off with the smallest principal balance, actually concentrating on your highest interest rate debt account is much better and has a positive impact in reducing your debt load. If you’ve already saved a large amount of money, start off with the highest interest rate card while making the minimum payments on all the other cards.
Pay more often: Most credit card holders are tired of dealing with their debt burden and this is the reason why they want to exterminate such debts as fast as possible. Paying more often than just making the scheduled payments is a unique strategy that you can adopt in order to become debt free sooner. Try making a payment every two weeks so that you can eliminate your debt burden faster. You must have heard of this method while repaying your mortgage loan but it is also done while repaying the mortgage loan.
Stop incurring further debt: While repaying the debt that you’ve already incurred, if you keep on accruing new debt, you can never repay your debts entirely. Restrict the usage of credit cards so that you do not fall in further debt and you don’t need to seek help of professional debt relief options in the long run. Carry cash instead of credit and shun the habit of resorting to credit when you afford to buy something for cash.
Getting out of debt and staying out of debt are different things and you have to make sure that you take the required steps to stay out of debt n future. Pay off credit cards fast and make sure you restrain your expenses so that you lead a fiscally free life.