By using this site, you agree to the Privacy Policy and Terms of Use.
Accept
Financial Slot
  • Home
  • Net Worth
  • Business
  • Save
  • Insurance
  • Wealth
  • Investment
  • Cryptocurrency
  • Loans
Reading: 10 Best Ways to Pay Off Credit Card Debt Fast
Share
Aa
Financial Slot
Aa
  • Home
  • Net Worth
  • Business
  • Save
  • Insurance
  • Wealth
  • Investment
  • Cryptocurrency
  • Loans
Search
  • Categories
    • Technology
    • Entertainment
    • Travel
    • Fashion
    • Business
    • Politics
    • Science
    • Health
  • Bookmarks
  • More Foxiz
    • Sitemap
Follow US
  • Blog
  • Advertise
© 2022 Financialslot.com. All Rights Reserved.
Financial Slot > Blog > Credit Cards > 10 Best Ways to Pay Off Credit Card Debt Fast
Credit Cards

10 Best Ways to Pay Off Credit Card Debt Fast

Kreg Bale
Kreg Bale November 8, 2019
Updated 2019/11/08 at 4:00 PM
Share
9 Min Read
10 Best Way to Pay Off Credit Card Debt Fast
Photo: The Financial Express
SHARE

In this post, I will teach you the best way to pay off credit card debt fast. It has been discovered by financial institutions in the United States, that Households having credit card debts usually owe about $15,355 on their credit cards. When you calculate how long it will take to repay that amount at 18 percent on the least repayment term of 3 percent, you will discover that it will take about 23 years to pay off the debt. And that means almost double the principal debt or about $30,408.18. I know you wouldn’t want a huge debt on your neck and would like to avoid paying two times for what you bought.

Also, if you have a debt it may be hard for you to get a mortgage loan. So, below are steps and strategies you can use to pay off your debts. They are the best way to pay off credit card debt fast. Let us dive in right away.

10 Best Way to Pay Off Credit Card Debt Fast
Photo: Pexels.com

Best way to pay off credit card debt fast

  1. Stop Using Your Cards

If you buy things on impulse, the best way to stop you, is to make sure you keep your credit cards at home when you go out. But if your debt came due to a sudden turn of bad events, then you can hold on to your cards.

Moreover, if you close your credit card account it will damage your credit ratings especially if your account is old or have a high credit limit. So you can keep your card but don’t go around with it.

- Advertisement -
  1. Ask for a Debt Consolidation Loan

The next strategy you can use in this list of the best way to pay off credit card debt fast is debt consolidation and refinancing. You can look out for financial services to give you a personal loan at minimal interest rates.

But, if you get a new loan with a small interest rate that takes longer to repay, you will be paying more interest.

But, if you get a loan with a lower interest rate than the average of the balances it can pay off with fees, and you have a clear repayment schedule, you can pay off the loan faster.

  1. Get a Credit Card With No Balance For Normal Purchase

How it works is that when you use a credit card that has a balance on it, you pay interest on the day you buy anything with the card.

But when you charge normal things you buy on a credit card and pay once at month-end, it is better. Paying at month-end will help you avoid new interest charges. Also, you can use the amount you save as a result, to reduce the debt. So if you don’t have this type of credit card try and get it.

  1. Budget More for Debt Repayment

One other best way to pay off credit card debt fast is to make a budget for debt repayment that is as large as you can handle. For instance, you can use the money you usually set aside for emergencies for debt repayment. This will enable you to reduce the interest rate payable by that amount. And if you get an emergency, you can find other creative ways to raise money for it.

  1. Reduce expenses and allocate more to debt Repayment

This method is the best way to pay off credit card debt fast. Reduce your expenses and use the amount you save to pay down your credit card debt. Find the best ways to reduce your usual monthly expenses and you will achieve it.

10 Best Way to Pay Off Credit Card Debt Fast
Photo: Forbes.com
  1. Make additional Payments by Using New Money

You can look for additional money to pay down your credit debt. For instance, you can choose to work overtime once in a week. In this way, you will be able to earn extra income that will add up in one year. Also, you should use any income that you receive unexpectedly like tax refunds or monetary gifts from family or friends to reduce the credit card indebtedness. Besides, with the internet at your disposal you can organize garage sales to sell off things that you don’t use to raise money fast.

  1. Ask for Lower Interest Rates

Find a way to ask your credit card company to reduce the interest rate. At least meet your creditor to ask for a reduction once for all the credit cards you have.

For example, if you are able to get a reduction of interest rate on a debt of $5,000 from 18 percent to 13 percent, you will save a huge amount annually. You can then apply the savings to pay down your credit card debt.

  1. Pay Debts With The Highest Interest Rates First

Another best way to pay off credit card debt fast is to pay the minimum amount on each card. An then pay more on the card with the highest interest rate. If you do this, you will soon pay off the debt. Now use this same method to pay down the next card you have with the highest interest rate.

What this strategy focuses on is to pay off the debt rather than paying more money on interest. As you do this, you increase the speed at which you pay off your credit card debts.

The exception to this rule is when all your cards have balances.

If this is the case, pay off the card with the smallest balance first so that you now have one card you can use for ordinary purchases. And, avoid new interest charges to this card by paying for the card in full every month.

  1. Make two payments Each Month

You should be aware that most credit card companies use the average daily balance to calculate interest charges. For example, instead of paying USD$200 to reduce a balance each month, make two payments of USD$100 each. The effect on your daily balance is that it will become lower and that means you will pay less interest. And if you can pay weekly it will even be better for your credit card debt.

10 Best Way to Pay Off Credit Card Debt Fast
Photo: Pexels.com
  1. Transfer Debt to Zero Interest Cards

The last strategy in this list of the best way to pay off credit card debt fast, is to transfer debt to zero interest cards. If you transfer most of your debt to a card with a lower interest rate, this will help you to make repayment easily.

This could happen if you can see a card that does not have a transfer fee, and no interest charges for one year or even more. So try to pay off the whole debt during the zero interest periods. But if you fail to do so, look out for other offers with zero interest when the present one expires.

Conclusion

In this article, I gave you 10 best ways to pay off credit card debt fast. Also, if you like, you can use just one of the strategies. And you can also combine as many as you can to pay off your credit card debts. Besides, paying off your debts fast depends on the amount, your income and commitment. Try these methods because they work. And then come and share your experience on this website to help others.

You Might Also Like

Online bank account with instant virtual debit card

Credit Card Disadvantages And Advantages You Should Know

What Everybody Needs To Know About Common Credit Card Scams

What You Need to Know if You Don’t Have a Credit Score

9 Easy Ways To See If A Money App Is Safe To Use Before You Sign Up

TAGGED: Credit Cards, Debt, Loan

Sign Up For Daily Newsletter

Keep up! Get the latest breaking news delivered straight to your inbox.

By signing up, you agree to our Terms of Use and acknowledge the data practices in our Privacy Policy. You may unsubscribe at any time.
Kreg Bale November 8, 2019
Share this Article
Facebook Twitter Whatsapp Whatsapp LinkedIn Email Copy Link Print
Share
Previous Article 14 Terrible But Most Common Credit Card Frauds You Should Avoid 14 Terrible But Common Credit Card Frauds You Should Avoid
Next Article 9 Tips On How to Pay Off Mortgage In 5 Years 9 Tips On How to Pay Off Mortgage In 5 Years
5 Comments 5 Comments
  • Pingback: How to Borrow Money Without Ruining Your Finances (2021) - Financial Slot
  • Pingback: 14 Ways To Pay Off Holiday Debt And Save On Interests (2021) - Financial Slot
  • Pingback: 8 Best Debt Reduction Software Programs
  • Pingback: What Is the Debt Avalanche Strategy And How Does It Work? (2021) - Financial Slot
  • Pingback: The Balance Money Kit: Eliminating Credit Card Debt

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

- Advertisement -

Latest News

5 Things To Consider When Starting Your First Retail Business In 2022
5 Things To Consider When Starting Your First Retail Business In 2022
Business August 12, 2022
Soft and hard credit checks
Soft and hard credit checks – What is the difference?
Credit August 12, 2022
Can bitcoin replace bank notes
Can bitcoin replace bank notes?
Cryptocurrency August 11, 2022
Four ways in which bitcoin can benefit your firm!
Four ways in which bitcoin can benefit your firm!
Cryptocurrency August 11, 2022

You Might also Like

Online bank account with instant virtual debit card
Credit Cards

Online bank account with instant virtual debit card

June 28, 2022
credit card disadvantages and advantages
Credit Cards

Credit Card Disadvantages And Advantages You Should Know

June 9, 2022
common credit card scams
Credit CardsEducation

What Everybody Needs To Know About Common Credit Card Scams

May 11, 2022
don't have credit score
Credit Cards

What You Need to Know if You Don’t Have a Credit Score

May 6, 2022
//

We educate over 20 million users on personal finance, wealth and asset management through our network of finance blogs

Sign Up for Our Newsletter

Subscribe to our newsletter to get our newest articles instantly!

Financial Slot
Follow US

© 2022 Financialslot.com. All Rights Reserved.

Removed from reading list

Undo
Welcome Back!

Sign in to your account

Lost your password?