While we all need some type of credit to make purchases and finance big-ticket items, it's important not to get into credit card debt. In fact, paying off credit cards quickly is a great way to prevent getting buried in debt. In fact, the sooner you pay off your credit card(s), the less money you will end up spending on interest. That being said, if you have a balance on one or more credit cards, figuring out how to pay them off fast is probably a good idea. Putting as much money as possible toward your monthly bill is an excellent start. However, there are other steps that can help get that balance paid down faster. Here are some strategies for accelerating the repayment of your high-interest loans.
Commit to paying off your credit card every month.
The first thing you can do to accelerate the repayment of your credit card is to commit to paying off your bill every month. If you have a large credit card balance, you will probably have to make some sacrifices in order to make that happen. First, look for ways to reduce your spending. Make sure you are only using your credit card for purchases that you can actually afford to pay off at the end of the month. It is also a good idea to track your spending so you know where your money is going. Using a budget will help you stay within your limits.
Request a higher credit card limit and use it sparingly.
If you absolutely must use your credit card, try to request a higher credit card limit so you have more room to make purchases. However, it is crucial to use this higher limit sparingly. In fact, try to make only necessary purchases with this higher limit card. For example, if you need to buy a new piece of furniture and you don’t have the cash on hand, you can use your credit card to pay for it and then make a point of immediately paying it off. Using your card for only necessary purchases will help you avoid putting yourself in debt. Another option is to look for a credit card with a low introductory interest rate. This will help you pay off your credit card faster, since you will have a lower monthly payment.
Pay only the minimum on one card, and pay off another every month.
Many people pay down their high-interest credit card debt by prioritizing the card with the highest interest rate. This makes sense since you want to get out of debt as quickly as possible. However, many people take an even more aggressive approach. For example, you might decide to pay down your card with the highest interest rate and then use the rest of your money to pay off the card with the next highest interest rate. This approach will enable you to get more of your debt paid off faster. The only downside is that you will end up paying a lot more in interest over the long run. Still, it might be a better option for those who are struggling to get their finances under control. If you decide to go this route, it is a good idea to prioritize the card with the highest balance first.
Consolidate your credit card debt using a balance transfer credit card.
If you have multiple credit card debts, you might be able to reduce your monthly payment by transferring your balance to a new credit card. Many credit card companies will allow you to transfer your balance, with no penalty, as long as you make a new payment each month. Once you have negotiated the best possible terms, make a commitment to paying off your debt as quickly as possible. If you are able to pay off your credit card debt quicker, you might be able to get your original card back sooner.
Set-up an automatic payment from your checking account.
If you have multiple credit card debts, one way to accelerate the repayment process is to set up an automatic payment from your checking account. This is a great option if you have the money to pay off your credit card debt, but you feel like you need a little extra motivation to get the job done. With this strategy, your credit card payment will come out of your checking account each month, regardless of whether you have the money in your account. If you are disciplined enough to make sure your payment is made on time, this is a great way to pay off your credit card debt quickly.
Credit cards can be a useful tool, but they can also be a dangerous trap. If you get too deep in debt, it can be very hard to get out. Paying off your credit cards quickly is one of the best ways to avoid getting into debt in the first place. To accelerate the repayment of your high-interest credit card debt, you can commit to paying off your credit card bill every month, request a higher credit card limit, pay only the minimum on one card, pay off another credit card every month, and set-up an automatic payment from your checking account.