Should you have ongoing credit card balances, settling that debt quickly might be more achievable than you realize
Author - Coinfinancemoney (Tushar Mistari)
Image Source - Canva & Google
The crucial aspect is formulating a solid strategy and adhering to it consistently. Let's discuss the 4 strategies that can pay off debt quickly
Target one debt at a time - Are you maintaining balances on multiple credit cards? If that's the case then
Ensure you consistently pay at least the minimum on each card, and then concentrate on reducing the overall balance on individual cards, one at a time
You can choose which
card you target in one of two ways: Focus on high-interest debt, Try the snowball method
Pay more than the minimum - Examine your credit card statement. Opting to pay only the minimum balance on your credit card,
prolongs the time it
takes to clear your bill.
Paying more than the minimum will result in lower overall interest payments.
Consolidate debt - Through debt consolidation, you can merge multiple balances with higher interest rates into a single one with a lower rate
You can accelerate debt repayment without raising your payment amounts. Here are two prevalent methods for consolidating debt
One is Transfer Balances and another one is Tap into your home equity. It is always important to track your spending
Review your spending - Your credit card statement serves as a useful tool, with many issuers categorizing your expenditures
Key Takeaways - To confront credit card debt proactively, begin by devising and adhering to a plan.
Prioritize paying off high-interest-rate cards or those with the smallest balances.
Paying more than the monthly minimum will result in reduced overall interest payments.