Settling credit card debt as quickly as possible not only saves money on interest, but it can also help you improve your credit score.
Here are 6 tips from online self-improvement and life hacks magazine Dumb Little Man.
1. Take care of debt with the highest interest rate first: Settling debts with high interest rates
lowers the total amount of finance fees and interest you need to pay. This lets you save money by quickly settling the card with the largest balance and the highest interest rate.
2. Consolidate your debt: Combining all your credit card debt allows you to consolidate higher-interest balances into a single one with a lower rate.
The two best ways to accomplish this are by balance transfer or through home equity credit.
3. Start small and let your momentum build: By paying off debts in order from smallest to largest, it's easy to build momentum.
Each balance you settle puts more money in your pocket to put toward the next debt on your list.
4. Put Away Your Cards: To avoid adding to your debt load, store your cards in a safe place until you’re free from debt.
5. Negotiate for lower rates: If you are struggling to settle your credit card debt, contact your lender and request a lower financing cost. Banks will often agree if you just ask for a lower interest rate.
6. Know when it's time to ask for help: If you’re struggling to keep up with regular payments, or if your debt is greater than half of your annual income, don't be afraid to seek help.
Bankruptcy and debt management plans from nonprofit credit agencies can offer relief if you feel trapped by debt. Dealing with debt can be overwhelming, but these 6 tips can help you take control of your finances.
Here are 6 tips from online self-improvement and life hacks magazine Dumb Little Man.
1. Take care of debt with the highest interest rate first: Settling debts with high interest rates
lowers the total amount of finance fees and interest you need to pay. This lets you save money by quickly settling the card with the largest balance and the highest interest rate.
2. Consolidate your debt: Combining all your credit card debt allows you to consolidate higher-interest balances into a single one with a lower rate.
The two best ways to accomplish this are by balance transfer or through home equity credit.
3. Start small and let your momentum build: By paying off debts in order from smallest to largest, it's easy to build momentum.
Each balance you settle puts more money in your pocket to put toward the next debt on your list.
4. Put Away Your Cards: To avoid adding to your debt load, store your cards in a safe place until you’re free from debt.
5. Negotiate for lower rates: If you are struggling to settle your credit card debt, contact your lender and request a lower financing cost. Banks will often agree if you just ask for a lower interest rate.
6. Know when it's time to ask for help: If you’re struggling to keep up with regular payments, or if your debt is greater than half of your annual income, don't be afraid to seek help.
Bankruptcy and debt management plans from nonprofit credit agencies can offer relief if you feel trapped by debt. Dealing with debt can be overwhelming, but these 6 tips can help you take control of your finances.
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