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How To Pay Off Credit Card Debt?

5 Tips for Paying Down Your Credit Card Debt. Have a Look!

By Kirti BhargavPublished 2 years ago 3 min read
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Credit cards are like a coin having both advantages and disadvantages. By using a credit card wisely you can enjoy all the benefits of it. One of the major issues that you will have to deal with the credit cards is the possible debt trap. Not paying the credit card debt can create a problematic situation for the credit cardholder. This will not only hurt your financial health but also your credit score. It will make it difficult for you to maintain a good credit score. Hereunder are a few tips to pay your credit card debt timely.

Tips to Pay Off Credit Card Debt

#1. Prioritize your debt: The first and foremost thing is you need to prioritize your debt. See which debt is more important and needs to be cleared first and so on. Make a list of debt from most important to least important and then start paying it accordingly. Even the least important debt has to be paid off otherwise it also can harm your credit score.

#2. Convert into EMIs: Many times we use a credit card to make payments for big purchases. If you have an idea that you won’t be able to repay in one go then you can easily convert it into EMIs. It will take a load off you and allow you to maintain a good standing account.

#3. Register for Auto-debit services: One of the most famous methods to pay off credit card debt is to register for auto-debit services. This will keep your debts clear all the time and you do not have to worry about keeping reminders of the due dates. This also helps in avoiding late credit card bill payments. The timely payment of credit card dues helps in building a good credit score.

#4. Get a credit card with a low APR: The annual percentage rate or the interest rates plays a big role in increasing the debt. If you fail to pay the credit card dues on or before the due date, you are charged an interest that only increases the amount payable. To avoid heavy interest charges you need to apply for a credit card that has a low rate of interest. Having a credit card with a low APR can take some burden off your shoulder.

#5. Balance transfer: If you have multiple credit cards then you can use this strategy to pay off your credit card dues on time. This only requires a credit cardholder to use a credit card wisely and make the decision with due care. You need to check which credit card has the least APR value and the highest interest-free period. After analyzing this you can transfer the balance of other credit cards to one credit card and pay off the credit card debt with ease. This will help you in managing your multiple credit cards easily.

Bottom Line

To conclude, not repaying the credit card dues can become a blunder mistake. Carrying credit card outstanding balance from one billing cycle to another will only attract high-interest rates and you will land up in an unfavorable situation. If you are applying for a credit card for the first time then the chances of you landing in a debt trap are pretty much high. Instead of applying for the premium credit cards which have joining and renewal fees, go for the lifetime free credit cards or for the secured credit cards. This will help you in understanding how a credit card works and you will learn to manage a credit card. For having a good standing account and a good credit history you need to keep the credit card dues clear and maintain a low credit utilization ratio.

Share your experience if you ever faced the credit card debt situation and how you dealt with it in the comment section.

personal finance
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About the Creator

Kirti Bhargav

Financial Content Writer at Cardinsider.com

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