If you are looking to clear your debt from your credit card, while it is hard work and can mean being strict with your spending, it is possible. To become debt free.
Tips for pay off credit card
- It is important that you are paying more than the minimum balance each month off your credit card.
- Don’t add more debt, try living within your means.
- Make a budget and learn to stick within the limits.
- Consider consolidating your credit card debt into a loan.
While it is important that you consider reducing the interest rate you are paying, don’t jump for the first 0% deal you find. Reading the information for any deal is vital; often these deals come with a transfer fee. They have to make their money somewhere. They will add this fee to your debt meaning you will owe more. Work out if the deal is worth the transfer fee before your apply.
If you consider a consolidation loan then it is important to look at why you are in this position and put a plan into action as how you aim to resolve your financial situation. Without a budget or a plan, you might go back to spending on your credit card and within 12 months, you could be in a worse situation.
Creating a budget will allow you to see the money that you have and the amount of bills you need to pay, working out how much you can afford each month to pay down your debt is important. Try picking your smallest debt and putting as much as you can towards getting rid of the debt as quickly as possible. Once this is clear start on the next debt, keep with this process until you have cleared all your debts.
There are many different arguments for and against saving whilst trying to pay down debt. The argument against saving is you will have a higher rate of interest on the debt than you can get on a savings account, reducing the debt saves you money, having money in a savings account won’t earn you volumes of money in interest payments because of the lower rate of interest on savings.
However, if you have a problem or an emergency and you need some cash, not having any money saved will mean that you will need to turn to some form of credit to pay for the emergency, having money in a savings account will mean no credit and no need to pay any form of interest payments.
The choice is not easy and you have to weigh up the options carefully, savings or paying more off your debt.
Therefore, it is possible to pay off a credit card debt, but it will be hard work and you will need to have commitment to get to the end; it will take time but eventually you will become debt free.