Credit card debt can be a burden if it builds up slowly and paying it off is important, for your credit rating and also for peace of mind. Here is our guide to paying off your credit card debt as quickly as possible.
Take out a personal loan in emergency situations
If you are in an emergency situation to pay off your credit card in full there are last-minute options like payday loans. If you know you can pay these back then they could be an option for you. Just make sure you use the loan to actually pay off your credit card debt, not on something else that you might regret in future.
Make extra monthly payments
Don’t limit yourself to paying off one chunk of money every month, you can make two payments if you can manage to afford it. The interest on your credit card is compounded on a daily basis, the more you can pay off, the less interest you will be paying. If you get paid once a month it might be harder to pay two installments off your credit card, especially if you don’t want to run out of money. For those who get paid twice a month, this might be a more viable option. Get that debt paid off at the beginning of the month and you won’t have the chance to spend it later in the month, you will be forced to budget and spend reasonably.
Always check you are paying off the minimum payment by the monthly due date or you could risk getting late charges and penalties and this is the last thing you need when trying your best to get out of debt. If you lower your debt quickly, this can also help to improve your credit rating.
Find areas of life where you can budget
There are many areas of life where it’s easy to overspend, including eating out, transport and buying the latest gadget. Learn to cook at home and limit indulging in take-aways or eating out in restaurants regularly. You will then find you appreciate food much more when it’s cooked for you. It is simple to find recipes on websites and on YouTube, and cookbooks in your local supermarket or bookstore. Seeing how cheaply you can create restaurant meals yourself is a challenge and will help you save to pay back your credit card debts.
Think about the transport you use, would it be cheaper to buy a bike? If you start exercising more and cooking for yourself you will probably feel a lot better mentally and physically as well. You might own a car and definitely do need it for work then you could try and save on petrol by using it less on weekends. For those who rely on public transport, you can look into getting monthly discount travel cards or just cycle or walk on weekends.
The quicker you manage to pay off your credit card debt, the better for you. Just make sure you don’t let it build up again. Good luck with budgeting and paying off the debt, it can feel difficult at the beginning but once you get started you will be on a roll.