Easy Tips to Pay off Your Credit Card Debt

For most western economies, credit card has become a giant monster that can eat up financial stability and independence. It gives you a false idea of your spending power and you finally end up at the verge of bankruptcy. While it all may sound threatening, we can’t really deny the ease and convenience it has offered. So, the root cause of the credit debt issue is not credit card itself but the way it is used. If you wish to avoid the financial distress it can cause, you must start to use it cautiously. But what if you already are buried under tons of debt?

Easy Tips to Pay off Your Credit Card Debt

You need to get rid of it as soon as possible while paying the minimum interest on it. One easy way to pay it off is to roll down. That is why we have created the Roll-Down Your Credit Card Debt calculator. However, as we always say, using the tools without proper understanding is not very useful. If you wish to maximize the benefits of our tools, you must understand what causes the problem on the first place and how smaller changes in your lifestyle and spending habits can help you.

So, in order to ensure that you make the most out of our Roll-Down Your Credit Card Debt calculator, here are some more tips you should follow.

Get Rid of the Higher Interest First

The best way to roll down your credit card is to pay off the card that has the highest interest rate. If you have more than to cards, repeat this strategy until you have only one card left – one with the lowest interest rate. You can also get rid of the high interest rates by debt consolidation. Contact a financial consultant and see if you consolidation is possible. This way the interest rate for the majority of your cards can be brought down to considerable level.

Forget the Monthly Minimum

Monthly minimum can sound like a great relief but in actual it is not a very borrower friendly term. Instead of sticking to the monthly minimum, you should try to pay more than that every month. If you’ll keep paying minimum amount, you will be left with more debt every month. It will take longer to pay off the debt and as a result, you will end up paying more interest. so, with higher monthly payments, you can save a good sum of money in interest.

Follow the Snowball

If you have multiple cards with similar interest rates then the first strategy fails to help you manage your pay off. In that case, it is always better to start with a card that has the minimum balance. It takes lesser time to pay-off cards with less balance. And as our experts say, one paid-off card can really encourage and inspire a person to get rid of all the remaining ones as soon as possible.

Finally, make a budget and try to avoid using the cards as long as you still have debt to pay. Once you have mended your way, you can use the calculator to analyze how much you can save with a roll down.

Blog November 18, 2013 admin No Comment(s)
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