With mortgage costs rising and inflation now rising faster than take-home pay, many cardholders could be forgiven for feeling that they will never be able to clear their balances.
However, with a bit of budgeting, a fair amount of restraint and by carefully reorganising of your finances, clearing your credit card debt could be easier than you think.
Here are seven most do methods for clearing debts:
Step one: switching to a better card
If you shop around, you'll probably be able to find a credit card with a better rate than you're paying now. Most credit card companies will offer interest free 6 months, which will allow you to catch up on your debt.
Step two: stop spending on the card
It might sound obvious but stop using the card for purchases. The more you spend on credit, the more interest will be added.
Step three: use your savings to pay off your credit card
A common mistake for well-meaning but misguided savers is to carry debt on the credit card while stashing money away in a savings account.
Step four: pay more than the minimum each month
If you ever hope to pay off your credit card debt, you'll need to pay more than the minimum required each month. Even small, seemingly harmless debts can grow out of control.
Step five: draw up a budget and stick to it
Once you know how much you owe, draw up a budget and include a schedule for repaying your debts
Step six: consider switching current accounts
Most new current accounts come with interest free periods and give you more interest on your money.
Step seven: switch mortgage companies and utility suppliers
Your mortgage payment is probably your biggest expense each month, so it's important to ensure you have the best possible deal.
Here are seven most do methods for clearing debts:
Step one: switching to a better card
If you shop around, you'll probably be able to find a credit card with a better rate than you're paying now. Most credit card companies will offer interest free 6 months, which will allow you to catch up on your debt.
Step two: stop spending on the card
It might sound obvious but stop using the card for purchases. The more you spend on credit, the more interest will be added.
Step three: use your savings to pay off your credit card
A common mistake for well-meaning but misguided savers is to carry debt on the credit card while stashing money away in a savings account.
Step four: pay more than the minimum each month
If you ever hope to pay off your credit card debt, you'll need to pay more than the minimum required each month. Even small, seemingly harmless debts can grow out of control.
Step five: draw up a budget and stick to it
Once you know how much you owe, draw up a budget and include a schedule for repaying your debts
Step six: consider switching current accounts
Most new current accounts come with interest free periods and give you more interest on your money.
Step seven: switch mortgage companies and utility suppliers
Your mortgage payment is probably your biggest expense each month, so it's important to ensure you have the best possible deal.
Read More
No comments:
Post a Comment