Credit cards are very convenient to use, however they attract high-interest rates. With interest rates trekking upwards, you can expect your credit card rate to also increase. If you have a credit card balance, this means you will your debt will increase. Let us look at five sure ways to reduce your credit card debt faster:
- Pay off cards with small balances first
Paying off smaller balances is easier and more digestible by your pocket. Once you have paid off the cards with the smaller balances, you can work your way up to tackling the credit cards with larger balances.
2. Pay off cards with the higher- interest- rates first
Higher-interest-rate cards cost you more if you do not pay them off, plunging you deeper into debt.
3. Pay more than the minimum monthly payment
Paying the minimum monthly payment results in you taking much longer to pay off your debt and paying more debt. Every month you do not pay off your credit card balance, interest charges are added to your balance, ultimately increasing the amount of money you owe.
4. Put extra cash towards paying down your debt
If you have extra cash in your monthly budget, apply to your paying down your credit card debt. There is no penalty for making bigger payments to paying down debt, only advantages.
5. Stop using your credit card
Put away your credit cards, if you do not have them, you can’t swipe them. Also, use cash to make your purchases, until you have paid off your credit card and have learned how to use the card to your advantage.
Less debt means having more money to invest in your portfolio towards building your wealth and securing your future. To learn more about how you can take control of your money and improve your finances and have amazing investing tips emailed directly to your inbox? Join our Mailing List below.