Do you have a desire to finally take control of your financial life? If so, then paying off your credit card debt should be a number one priority. High balances and ridiculously high interest charges can be the never ending black hole at the bottom of your wallet and completely restrict any of your financial options. If you do not take care of your credit card debt as soon as you can, those high balances can keep you from achieving your financial goals, such as finally buying the home you have been dreaming about.
Regardless of the financial goals you might have, paying down high-interest credit card balances is the first step you must take on your journey towards financial freedom. Following these tips will enable you to finally gain traction in your financial life.
Use a Debt Management Service
If you suffer from substantial credit card debt and unscrupulous interest rate charges, then utilizing the services of a professional debt management company is definitely worth considering. These companies specialize in debt management and have years of industry experience helping countless individuals escape their heavy debt burden. Not only will these professionals help guide you and provide you with valuable financial advice, but they can request your creditors to freeze the interest rates on the accounts and help you settle your credit card debt problems once and for all. ConsolidatedCredit.co.uk is there for those who need help consolidating their debt.
Pay Off Highest Interest Credit Cards First
If you decide to tackle your credit card debt on your own, then you might want to start by first paying off your cards that have the highest interest rate. This strategy will save you the most money in interest charges, and from a logical point of view, it makes the most sense.
Using this strategy, you will want to make larger payments on the card with the highest interest rate while still making the minimum payments on any other cards. After the card with the highest interest rate has been paid off, then simply continue the strategy with the card that has the next highest rate. It is important to pick a predetermined amount as a payment and stick to it. For instance, if the credit card has a minimum payment of £100, then you could make a £150 payment each month on the card until it is paid off, regardless of how much the minimum payment reduces each month.
Pay Off the Lowest Balances First
This is another strategy that you can employ to watch your credit card debt erode away and witness noticeable results fast. Using this strategy, you increase the monthly payment on the card that has the lowest balance, while still making the minimum payments on your remaining credit cards. After the card is paid off, then you would move on to the credit card with the next lowest balance.
It is much easier to pay off a credit card with a £400 balance than a card with a £2,000 balance. In addition to gaining momentum and a positive feeling, every card you pay off will equal one less monthly payment that you must make. This savings can then also be applied towards the next card.
Consolidate Debt to One Card
This strategy is perfect for those that like to keep their finances simple. Consolidating your debt from multiple cards to one credit card will allow you to only make one payment each month. This will make it easier to stay on top of payments and also pay down principal faster. Like the other methods, you should come up with an amount that exceeds the minimum payment in order to help you see noticeable progress in paying down your debt.
Each of these credit card debt strategies can be used to help you reduce your credit card debt. However, if you are truly serious about eliminating your credit card debt, then you should use the services of a professional debt management company. Their expertise in this field will prove invaluable in getting your finances on the right path once and for all.