Some Effective Strategies to Pay Off Your Credit Card Debts Faster? Check Here

Consider balance transfer facility:

If you are already in a bad debt cycle, a balance transfer or transferring your debts from one card to another is your best option. Balance transfers allow you to transfer your balance from one card to another or from multiple cards to one. This provides you with temporary debt relief. The second bank offers a credit-free period of up to 90 days to help you repay your outstanding balance. When the credit period expires, the cardholder will be charged regular interest.

Conversion of outstanding bills to EMIs:

If you find yourself unable to repay your credit card balance, speak with your bank and request that it be converted into monthly EMIs. Banks, on the other hand, charge a monthly interest rate of 2-3% for providing the EMI facility. There will also be a processing fee of approximately 1-2% of the outstanding amount.

Pay off the highest-interest debts first:

This is something that many people overlook. When you have debts on multiple credit cards, most people will prioritise paying the one with the shortest due date. This is clearly a bad strategy. Pay off debts on the card with the highest interest rate first. This reduces your total interest outlay because unpaid dues with higher interest rates accumulate interest more quickly.

Pay more than the minimum amount:

Many cardholders make the mistake of paying only the bare minimum. Many borrowers become trapped in never-ending debt spirals as a result of mounting debts. Also, keep in mind that credit cards have extremely high interest rates, and paying only the minimum due amount will only exponentially increase your outstanding amount, depending on the outstanding amount.

Limit the number of credit cards:

You may receive offers for new cards from sales representatives visiting your office as well as from the numerous mails sent to you by various banks. The offers appear irresistible, and there is no denying that credit cards are useful financial tools. However, using multiple cards increases your chances of getting into debt by missing deadlines. Furthermore, the buy-now, pay-later policy entices even the most frugal shopper to overspend and splurge on non-essentials.

Track your bills on regular basis:

This is future-oriented advice. It is always preferable to create a credit card budget and stick to it when making purchases. You can then pay off your bill in full without carrying it over to the next month or becoming trapped in a debt cycle.

It is recommended that you charge all of your payments, including rent, utilities such as gas, wifi, telephone, and water bill, to your credit card. Because these are ongoing monthly expenses, they must be met regardless.

If there is a major expense, such as a vacation or the purchase of an expensive product, it is critical to first sort out your finances and then make a plan. You can use your credit card to book flight tickets and hotel reservations because they have many offers and discounts in these categories. If you have accumulated enough air miles, you can use them to purchase plane tickets.