Paying credit cards off fast is what everyone wants to do, obviously, but most people just stay with the same minimum payment each month which is set at a rate at which it will; keep you in debt forever, make you pay a lot more interest, and are just plain annoying. Luckily there are methods to pay off credit cards fast so that you can put an end to debt and harassing calls, and call yourself debt free! By utilzing these methods, they will get you out of debt fast and save you a lot of money.
Paying Credit Cards – 5 Methods to Use
- The first methods when it comes to paying credit cards off is to save for retirement. No this is not a joke, by saving for retirement, you will recieve tax deductions on what you save at the end of each fiscal year, meaning you will get a check that you can drop on your debt which will get you out of debt a lot faster. You can also take your lump sum in retirement funds and pay off your debt with this as well. This is a very powerful resource for paying credit cards off in record time.
- Snowballing your payments is another great method to use for paying credit cards off. This is done by paying the minimum on all of your credit cards except the one with the lowest balance. You can knock out the debt fast by paying extra on this card, and when this one is done, move onto the next and do the same thing with the next lowest debt total. This is a great way to pay off debt and not get to stressed trying to pay them off all at once.
- If you pay more than the minimum you will no doubt save money as well as chop of up to a decades on paying credit cards back. For example say you have 10,000 dollars in debt, 18 percent interest and your minimum payment is 50 dollars per month, it would take about 14 years and you will pay close to 9000 in interest. If you up your monthly payment to 15o each month, your payment term drops to about 7 1/2 years and you will pay about 7000 in interest. Making a higher payment each month can seem impossible, but it can be done if you track what and where you are spending each month, and budget out the things that you do not need to buy. This money can be used to paying credit cards off for good. Don’t elminate all the good stuff though, we all need to splurge!
- Paying credit cards off fast can also be done by taking out a home equity loan. If you have money has been accumulating throughout the years of paying your mortage, you can take out this money and drop a bomb on your debt.
- You can also use consolidation for paying credit cards off. This resource is where you group together all of your credit card debt with one collector, which it is advised to do it with your personal bank or organization you trust. It should be known consolidation has been known to affect your credit a bit, but if you make on time payments, your credit history will be submitted to credit bureaus and will boost back up your credit score.
- Last but certainly not least is STOP paying with your credit cards. This will get you out of debt a lot faster because whatever you owe when you stop is what you will owe for good, and you won’t keep adding to the total each month.
Paying Credit Cards Conclusion
If these paying credit cards methods do not work for you for whatever reason, you can try renegotiating the terms of your repayment with your credit card company. Often times you can explain your situation and they can help you out with lower monthly payments, or suspending payments for a short amount of time. Hopefully this information was exactly what you needed when it comes to paying credit cards off and getting out of debt for good.