Top 10 Tips to Show You Ways on How to Pay Off Debt Fast
“Below are the top 10 tips on how to pay off debt fast. Read on as there really is a light at the end of the tunnel!
Trying to pay off a sizable debt is no picnic. It can be discouraging to pay those bills month after month while it seems like the balances are hardly moving.
Top 10 Tips to Show You Ways to Pay Off Debt Fast
- It’s usually a good idea to negotiate a lower interest rate on each credit card account. With rates that can reach 30 percent or higher, credit cards can take decades to pay off. The lower the interest rates, the quicker the balances can be paid. Most credit card companies are willing to lower interest rates at least slightly if you just ask.
- If asked, credit card issuers will also lower the annual fee on an account, or they may even waive it entirely. This small amount adds up over the years, and you’re better off without it.
- Many credit cards come with numerous fees – late payment fees, over limit fees, and cash advance fees – which can pack hundreds of dollars onto your balance each year. It’s first necessary that you become aware of all the potential fees associated with your credit cards and do your best to avoid incurring them.
- While cash advance fees are not likely to go away, many credit card issuers will remove late fees and over-the-limit fees if you do not consistently incur these. All you have to do is ask.
- If you have gone through a period where you had difficulty paying on a particular account but have since paid at least the minimum due for several consecutive months, a credit card company may be willing to remove all or most of the late fees that were charged. This can reduce your total balance due by a few hundred dollars, depending on the particular situation.
- To successfully pay off debt, it’s essential that each credit card is paid on faithfully every month. Each statement will list a minimum amount due, but it’s best to pay more than this each month. Obviously, the more you can pay monthly, the quicker the balance will be paid off entirely.
- At the same time, it’s important to avoid taking on new debt. Credit card use should probably be stopped entirely while paying off accumulated balances. You may choose to keep the cards for some future time, or you may need to cut them up to eliminate the temptation.
- It can be very helpful to minimize your expenses in other areas and apply the money saved to your credit card payments. For example, you may decide to stop eating at restaurants for the next few months and put the money you would have spent toward paying down a credit card. Expenses like magazine subscriptions, add-ons to your telephone or cell phone service, and automatic car washes can add up quickly. Eliminating these extras for a short time can greatly reduce your credit card balances.
- It may be possible to negotiate a lower pay off amount with a credit card company. Many companies will accept around 20 percent less than the total balance due in a lump sum “settlement.”
- After paying off a credit card in full, it’s important to take the amount of money you have been paying each month and apply it to another credit card. This approach is sometimes called “snowballing” and will help you pay off the other cards faster….. More at How to Pay Off Debt Fast – Top 10 Tips to Pay Off Debt Fast…
More Reading on How to Pay Off Debt Fast:
- How to Pay Off Debt Fast – How to Pay Off Credit Card Debt
- How to Pay Off Debt Fast – Four Strategies to Pay Off Credit Card Debt Faster