Most Important 4 strategies to pay off credit card debt faster

 4 strategies to pay off credit card debt faster 

If you carry your credit card balances month to month, paying off that debt fast might be easier than you think. The main key is developing a good plan and sticking to it. These four main strategies can help you decide which course to take to quickly pay off any credit card debt.

1. Target only one debt at a time

 Do you carry a balance on more than one credit card? If yes, make sure you  always pay at least the minimum on each credit card. Then focus on paying down the total balance on one card at a time. You can choose which card you must target in one of two ways:

Focus on high-interest debt- 

Check the interest rate section of your credit card statements to see which card charges the highest interest rate, and concentrate on paying off that debt first.

Try to implement snowball method- 

According to snowball method, you pay off the card with the smallest balance first. Once you’ve repaid the balance in full, you take the money you were paying for that debt and use it to help pay down the next smallest balance.

2. Pay amount more than the minimum- 

Look at your credit card statement. If you pay amount the minimum balance on your credit card, it takes you much longer to pay off your bill. If you pay amount more than the minimum, you’ll pay less in interest overall. Your credit card company is required to chart this out on your statement, so you can see how it applies to your bill.

3. Consolidate your debt- 

Consolidating your debt lets you integrate several higher-interest balances into one with a lower rate, so you can pay down your debt faster without increasing payment amounts. Here are two common ways to consolidate debt:

Transfer your balances

Take advantage of a low balance transfer rate to move your debt off high-interest cards. Pay attention that balance transfer fees are often 3 to 5 percent, but the savings from the lower interest rate may often be greater than the transfer fee. Always factor that in when considering this option.

Best way Tap into your home equity-

If you have home's equity, you may be able to use it to pay down card debt. A home equity line of credit may offer a lower rate than what your cards charge. Be aware that closing costs often apply.

If you do consolidate your debt, keep in mind that it’s important to control your spending to avoid racking up new debt on top of the debt you’ve just consolidated.

4. Always Review your spending-

You can start by categorizing your monthly spending, for example: groceries, transportation, housing and entertainment. Your card statement can be a helpful tool for it. Many issuers categorize your spending. Also gaze for areas where you can cut back. and then take the money you’ve freed up and apply it to paying down your debt.

Try to Pay with Cash- 

One way to manage your all debt is to consider buying things with cash. Using cash or a debit card can help you avoid overspending or making impulsive buying—plus you eliminate any extra amount that may apply when paying with credit card and you’ll also have a clear understanding of how much is your spending coming inevery week or month.

 Try to use financial windfalls- 

Use all bonuses or other financial windfalls to debt reduction rather than adding these funds to your monthly spending pool.It's a smart way to make paying down high-interest debt like credit cards or personal loans a priority by using financial windfalls.. ...