Extra payment to the credit card issuer? Just barely have all the money you earn each month. Need some extra cash? No problem! Extra payment for credit cards is one of the easiest ways to pay off credit card debt fast. Here is how it works:
First, take out one or more new credit cards. Make sure they are really “new” by check their credit cards against a short report of them from the consumer reporting bureaus. See if there are any mistakes and fix them. When you get a chance, make some extra payments to the credit cards as well. Those added payments will help to reduce your balance and show the credit cards to be effective debt management tools.
Once you have a handful of credit cards open and making good, regular, on-time payments, then think about getting the balance from the credit card company that has the lowest interest rate. If this is impossible, you really want to look into transferring your balances to another low-interest company. When you transfer your balances, make sure you cancel the accounts so you won’t have another “out of sight, out of mind” charge card reminder in your mailbox. These are just reminders designed to keep you paying on debt they don’t really care about.
Once you have your minimum payment payments in order and you are paying your minimum payment every month, then think about what else you can do to pay off the debt faster. Can you lower your credit card interest rate any? Are you paying more than the minimum amount every month? Can you stop paying the credit cards altogether? There are lots of other ways you can take steps towards paying off your credit card debts faster.
The best way to start paying off credit cards faster is to use the least amount of money available each month to make your minimum monthly payments. Then, when your balance is paid off, you can increase your payments by just one percent each time. This will take some time and discipline, but it can do wonders for your credit score. Eventually, your credit score will go up because of the additional payments you are making, not because of the lower minimum payments you had previously made. Also, you may find that once you have paid off the minimum payment, you no longer need the credit cards. It is important to remember that the credit card companies own the debt that you owe them, not you.
Another great way to pay off credit card debt fast is to make a few changes to your budget to remove things you don’t need and make room in your budget for more necessary items. If you don’t have a lot of money to make a large purchase each month, then cutting back on eating out and shopping would be beneficial. You can reduce your shopping trips and purchase only what you need at home, or at the store. By reducing the amount of time you spend shopping, your money goes toward paying off your debt quicker and easier.
One last way to pay off credit card debt fast is to start negotiations with your creditors. Most often, people who are behind on their bills have little hope of getting anything done with their creditors, but by becoming extremely friendly with them, things may change. If you have been ignoring phone calls from your debt collectors, then you can begin negotiations with them to set up a payoff plan. Creditors are much more likely to work with you when you are more willing to negotiate, and they might actually lower your minimum payments as part of your negotiation.
When you want to know how to pay off credit card debt fast, the first step is to find the quickest way possible to get out of debt. Sometimes that means sacrificing some luxuries in order to afford to make payments. But if you are serious about paying off your debt, you need to take this first step. No matter which method you choose, you need to remember to make your minimum payments on time. This is your best chance of establishing a positive credit rating. Once you’ve established a good payment history with the credit card company, you’ll be well on your way towards a debt free future.
Recent Comments