There is no easy way to eliminate the burden of credit card debt. Sometimes, it is best to look at each person’s situation before deciding on the best way to proceed. But, there are some general tips that can be useful to focus on. For example, you can focus on getting each card paid off individually, and maybe even transfer all your outstanding balances to one card, making it easier to pay off. You could even ask for a lower interest rate. Sometimes it can be easier to get a loan to pay off all the debts.
Here are some pay-down tips and strategies from Dr Piggy Bank which we feel will help you on your way to paying off your credit card debt.
Highest APR Cards Must Be Paid Off First
Cards which have the highest APR rates are the debts you should focus on paying off first. It can be best to create a spreadsheet to make the process as simple as possible to administer. When paying off these high interest APR cards, make sure that you are still making the minimum payments on your other cards, or you could incur additional charges. Once the highest APR card is paid off, simply move on to the next one until that is paid off. You will notice that your monthly interest payments will fall the more you do this. Remember, the aim is to get the balance to zero. Easing up on your payments as you near the finish line for that card will only lower and slow your overall progress.
Consolidate Into One Monthly Payment
If things are becoming unmanageable, it could be a good idea to consolidate your debt into one payment. This means you will have one larger payment instead of making five or six smaller payments for example. Of course, just because the debt is now in one payment, doesn’t mean it has gone away. You need to make sure you are taking measures to pay off the single payment balance.
There can be an incentive to doing this. Many balance transfer credit cards have a zero-interest rate for a set period, which could reduce your interest payments. Make sure you find out what the APR rate will be after this introductory period finishes.