How to Pay Off Credit Card Debt Quickly

While the best advice from most is to avoid it, sometimes incurring a hefty credit card debt becomes an unavoidable fact of life for many people. When faced with credit card debt paying it off quickly should become one’s key financial goal. This is because the interest rates on almost any credit card will be higher than a) any returns that can be made investing, and b) the interest rates being charged on almost any other form of debt.  Here are a few steps to follow to pay off your credit card as quickly as possible.

1.   Assess the Situation

The first thing you need to do when tackling credit card debt is to assess the overall situation.  How many cards do you have? What are the interest rates? What are the minimum payments?

While this step certainly isn’t fun it will be necessary in order to plan your approach to reducing your debt as quickly as possible.

2.   Call the Credit Card Companies

Calling the companies that hold your debt is the next step to managing it.
Explaining your situation and asking to get interest rates reduced, even temporarily, or moving to another card you are eligible for with a lower rate is worth the phone call.

3.   Re-allocating Funds

Next you need to consider your ability to move funds around to reduce your overall debt on the highest interest rate cards. Options include:When considering any of the options above you always need to consider whether the transaction costs or transfer fees may outweigh the benefits of moving the funds.

4.   Starting the Payment Process

When looking at all of your debts you need to ensure that you make the minimum payments required for all of your cards. After that you are going to want to put any additional funds onto the highest rate card. Once the highest rate card is eventually paid down you should move on to paying down the next highest card.

5.    Maximizing Your Debt Payments

Now that you have an approach to how you’re going to pay down your cards you need to maximize the amount of money you can devote to paying them down in order to speed up the process. Here are a few tips: 

--Jeffrey Glen
By InvestorGuide Staff

Copyrighted 2020. Content published with author's permission.

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