Do you shoulder a large amount of arrears due to your card payment? Do you dread you may never repay the arrears? Don’t get afraid. You are not by yourself. According to recent statistics, people currently owe the government around $900 billion. Ginormous, right? If you too, are considering means to pay off credit card debt, allow us to assist you.
Today, we will list down a number of methods one can utilize to cast away the debt demon. In spite of what we believe, plastic money is not a necessary rung in life. One can always become self-dependent. Some may find it liberating to use cash and debit transactions. So, here we go! Let’s get you to the primary footstep of liberation.
Can You Tackle The Debt Demon Head-On?
Such a task entails a strong mind. You ought to restrain your urges to spend even a dollar worth from plastic money while repaying. Otherwise, you will by no means pay off credit card debt of yours. Keep your mind steady and focused.
You should craft a financial plan to follow strictly. So, you don’t fret over unnecessary billings. It is a slippery slope, and it requires the finest equipment to scale such a steep mountain. We hope you are ready, for we are.
What Should You Do With Your Plastic Money?
Kill it! Yes! You must throw plastic money away the minute you begin your journey towards financial autonomy. Chop them, burn them, bury them; it isn’t relevant. Just free your eyes from those demon’s workers. A very important stride for the process and pay off credit card debt. One may ponder that we exaggerate. But, research shows that it’s really effortless to get stuck in an infinite loop of reimbursing and arrears.
Either people use plastic money while repaying, which makes it impossible for the due amount to reach nil. Or, people continue using cards even after refunding all the arrears. Didn’t you learn your lesson? You succeeded in paying off credit card debt. There is no motive for one to step into that quicksand ever again. You may find it tempting, but no amount of rewards or offers grant you the satisfaction of self-reliance.
Our Picks For The Best Methods
Here we are. Let’s get right to business. We list down our paramount methodologies for a good head start. That way, you can plan better and pay off credit card debt sooner rather than later.
Before we begin, one must understand that psychology plays a very important role. Just feeling improvement thrusts one to endure up the path. So, a lot of our methods target such a mind. That way, at no point, are you discouraged or out of hope. We must point out that there is no “top” technique to do it. Every situation is diverse. Below is merely a list, and not a ranking. You must reflect on your circumstances and act accordingly. So, without further ado, let’s pay off credit card debt!
It is a method wherein you join all your plastic money and pay off credit card debt of all cards in one go. Think you have heard it somewhere? It will grant you 5-6 years to repay your arrears while offering you a reduced interest. The fixed time limit may make you work harder to repay the loan. Consolidation, if done right, could save thousands of bucks of interest.
But the option may seem pathetic once you realize that the existence of the demon still looms large. Banks seem to favor only those with a concrete credit score. But being in debt, scores drop, undoubtedly. A big catch-22 situation, right? Further, rates fluctuate. If your loan’s interests go higher than the plastic money, it means higher APR for a LARGE principle. It becomes unmanageable to pay off credit card debt. You already struggled to repay the original arrears, don’t go chasing another one. You may look for an allowance of non-changing APR.
If you enquire about a mathematician, he will tell you to pay off credit card debt, which demands the most APR. It is mathematically true. Prioritizing it will surely reduce costs and dues in the long run. Why does it work? You expend largest on that plastic money, seeing the tangible balance. Hence, common sense tells us to kick it away foremost. It will help achieve that dream and pay off credit card debt.
For instance, consider three cards. One has $850 with 13% APR while the other is $1800 and 9%. Number three has $1500 for the interest of 22%. Clearly, maths says to pay off credit card debt of number 3. That will stop the $1500 from rising any further. But the downfall occurs when most balance comes in with the biggest annuity. It may feel depressing. As we said before, psychology is important.
Initialize With The Tiniest Amount, Not Highest APR
A very simple and logical technique. Here, one must pay off credit card debt of least amount foremost. It is very important in making you actually feel the progress. List down all arrears in ascending order of amounts. Then, shout “This is Sparta” and attack the primary card on the list. Pay the entire kit and caboodle off. Once you lock the doors on the account and come home, you will feel the satisfaction. Dance a bit if you feel like. But, then, get ready to tackle the subsequent arrears in your path to success.
Trust us, and enthusiasm will drag you towards the finishing line. Starting off with the prevalent arrears can make you drop confidence, and then you are none the better. But, it could happen that your later arrears could rise. But, if one is not actually that bad in a financial state, they will be just fine. Because slowly, but steadily, one condenses the demon’s influence on their mind. That is very important to pay off credit card debt.
Millions of people benefit from these methods. So, adopt the method most suitable for you and start working! Remember, never give up! You deserve to get debt-free, and you will.
That’s it from us today. If you have queries, you can communicate with us in the comments section.