| Credit cards can be difficult to handle some times. | | | | milestones / weigh points of where you need to get |
| Before you know it your debt can have risen to a level | | | | the debt down to by certain dates along the way. This |
| where you start to find it difficult to pay off the | | | | way you will ensure you are paying the debt down |
| balance owing. Before you know it you are really | | | | and keeping on target with your goal. |
| struggling and less and less money is being paid off the | | | | You will need to carefully work out how much you |
| card and more and more is being added to it. This | | | | need to pay off the card each month to get the debt |
| article 10 Ways To Pay Off Your Credit Card Sooner | | | | down to the level you need it to be down to. |
| explores ways to get your credit card back in control. | | | | Remember to factor in interest and other costs in your |
| 1. Always pay at least your minimum repayment by | | | | calculations. |
| the due date | | | | 7. Know your credit card |
| If you start to fall behind on your credit card | | | | All credit cards providers issue their cards with |
| repayments it can cost you hefty sums of money that | | | | different terms and conditions. Therefore you must |
| would have been better off used to pay down your | | | | know and understand your card. |
| debt. How the card providers work is that if you don't | | | | Some questions to think of are: |
| make your minimum monthly repayment by the due | | | | - When does interest start being charged for |
| date, then most providers will charge a late payment | | | | purchases / cash advances? |
| fee. This is generally around $25-$35. This penalty | | | | - Do you have any interest free days? |
| charge can add to quite a sum of money over a year | | | | - If you don't clear the debt in full each month, how is |
| i.e. $300-$420, and as you can see this money would | | | | interest charged on your purchases? |
| have been better paid off the debt instead. | | | | - Are your repayments paid off your purchases or |
| To avoid missing your repayment due date, set up a | | | | your cash advances? |
| task in your calendar a day or so before the due date, | | | | - What is the interest rate? |
| so that you are reminded to make your payment. | | | | - Is the interest rate a special offer that will terminate |
| 2. Try and pay more than your minimum monthly | | | | on a certain date? |
| repayment | | | | - Is the interest rate different for purchases / cash |
| If you only pay your minimum monthly repayment and | | | | advances? |
| carry debt forward from one month to the next, you | | | | - How much is the annual fee? |
| are likely to find you are barely treading water with the | | | | - Is there a late payment fee? |
| debt and that you are getting charged a lot of interest | | | | - Are there other fees that you are likely to incur? |
| from one month to the next. If you make a bigger | | | | - What overseas transaction fees are there if you buy |
| repayment and remember it might only be a few | | | | goods / services in overseas currencies? Once you |
| dollars here or there, it will all add up in the long run and | | | | know and understand how your credit card works, |
| help to reduce your debt and save you some interest. | | | | you might like to do some research to see if you are |
| To get some extra money, see if you can cut back on | | | | getting the best deal. Is there a credit card provider |
| some of your spending. Maybe one or two less | | | | offering a better deal? Switching credit card providers |
| lunches out a week, or a few less takeaway coffees, | | | | could be an option to save you some money, but you |
| or hiring a DVD instead of going to a movie. Think | | | | must ensure you fully understand the terms and |
| about ways you can grab an extra $10, $20, $50 a | | | | conditions of any new card you take on - read the |
| week to pay off your credit card. | | | | small print very carefully. |
| 3. Pay into your credit card more regularly than | | | | 8. Watch out for interest free days |
| monthly | | | | Interest free days generally only apply if you pay your |
| You don't need to wait until the day your repayment is | | | | credit card debt off in full by the required repayment |
| due to pay money into your credit card. You can pay | | | | date. This doesn't mean just paying the minimum |
| money into it at any time. This can be done via internet | | | | monthly repayment amount, it means paying the full |
| banking, cash over the bank counter, phone banking | | | | balance owing on the card. If you don't pay the debt |
| etc. So as mentioned in point three above, if you can | | | | out in full, you are generally charged interest from the |
| get an $10, $20, $50 a week that you can use to | | | | day the purchase occurs. |
| reduce your credit card debt, then ensure you pay it | | | | So if you have a credit card and never pay the debt |
| straight into your credit card. | | | | off in full, you are not getting any benefit from interest |
| Set up a system where you challenge yourself to get | | | | free periods. So in that case you might be better off |
| an extra sum of money into the card each week by | | | | getting a credit card that charges you interest from |
| cutting back your spending. You will be surprised how | | | | day one, but has a much lower interest rate. After all, |
| much that amount will add up to at the end of a month | | | | you are probably getting charged interest from day |
| and how much quicker your debt will be paid off than | | | | one on your current card. |
| if you just paid the minimum payment into the card on | | | | 9. Do a reality check |
| a monthly basis. | | | | Jump into a loan calculator and put in your credit card |
| 4. Don't do cash advances | | | | balance and what you roughly pay off the credit card |
| Doing cash advances on your credit can really cost | | | | each month (after considering what you add to the |
| you money. Not only are you getting charged interest | | | | card each month). Look at the figures, You might be |
| from day one, you are often charged a fee for the | | | | shocked to see that your debt is still going to be |
| privilege. Some credit card providers also separate | | | | around in 10 years time. How does that make you |
| purchases from cash advances and will charge a | | | | feel? Does that give you some motivation to work |
| different interest rate on each and spread your | | | | hard at getting some extra money to throw into your |
| repayment across each. | | | | credit card? Well if that doesn't, looking at how much |
| Use other means to get access to cash such as using | | | | interest you are paying over this period of time should. |
| your transaction accounts rather than your credit card. | | | | Go on, check out your situation. |
| 5. Watch what you spend on your credit card | | | | Play around with the loan calculators and work out |
| There is no point in living under an illusion that you are | | | | how quickly you can pay your credit card debt off by |
| paying off your debt, if you are spending more on your | | | | adding some extra sums to your current repayment. |
| card than you are paying off the card each month. | | | | See how much interest you can save by paying more |
| This happens so often and people just don't seem to | | | | into the card. |
| realise that their debt is going up instead of going down | | | | 10. Work out where you can get extra cash |
| when they do this. | | | | Any money you can amass is best paid off your |
| As an example, if you only pay $1,000 a month off | | | | credit card rather than being spent or sitting dormant in |
| your credit card, but you are spending $1,200 a month | | | | a saving account earning little to no interest. So, how |
| your debt is actually going up by $200 a month PLUS | | | | motivated are you to get your credit card debt paid |
| you will also have interest charges and other fees | | | | off? How serious are you in finding a solution to your |
| added to this amount. Take time to review your credit | | | | debt problem? What are you willing to do to get some |
| card statements and make a note of how your debt | | | | extra cash? What are you prepared to sacrifice? |
| is traveling. | | | | Can you mow a lawn on a weekend, babysit a child |
| 6. Set yourself some milestones and goals | | | | during the week, do some overtime at work, sell some |
| One of the quickest ways to pay down any debt is to | | | | items on eBay, walk / groom some pets or get a part |
| set yourself a goal. Firstly work out when you want | | | | time job? Think outside the square for ways you can |
| your credit card debt paid off in full. Once you have | | | | earn a few extra dollars that can be committed to |
| worked out this date, you can then set some | | | | paying off your credit card sooner. |