Credit cards are the perfect solution for most buying needs and purchases. It solves every problem.

But they are good only if used smartly.

If you go mad on a shopping spree or buy something so extravagant that it eats away your whole budget, then that piece of plastic can become a huge liability at the end of the month.

Not being able to pay credit card bills has become common today.

Unfortunately, it results in your current bill adding up to the previous months, creating an even bigger debt.

To clear those, you then borrow money or take a loan, and this vicious cycle overtakes all your financial freedom. Don’t let that happen.

6 Tips That Can Help You End Your Credit Card Debt

Overview:

1. Prioritize

You should always pay the credit card bill with the higher interest rate first, rather than the one that holds a higher amount.

It will save you from paying a ton of money that you’ll have to give away in the form of accumulated interest later.

You may think that paying only the minimum dues will take the load off of you, and you can push it aside at that time. But think twice about that, as it may affect your credit score.

Banks keep track of your economic activities, and when they see that you are becoming a reckless spender, they might even suspend your card.

2. Ask the creditors

Sometimes, a simple phone call to your issuer can provide you with a reduced interest rate. Yeah, it’s that simple on some days.

But you’d need to have a solid credit score of 730 or above, and you have to be a long-time customer who has a record of making payments on time.

You can get one or two percentage points cut down, which may seem like nothing but adds up to hundreds of dollars saved annually.

Pro tip: just say that you’ve some competing company that has offered you a lower rate, and there’s a good chance your current issuer may give you the same rate.

For bigger debts, you’ll need Credit Mediation debt negotiation techniques. You can even hire professional help for better control over the affair.

3. Transfer with caution

It can be very enticing that you just move your balance from one card, and voila, much less interest to pay.

Yes, moving the balance from a card with a high-interest rate to a considerably lower rate has some perks. It can save you hundreds of dollars every year.

But here’s the twist. You get those savings only if you can pay the debt within the introductory window (which usually goes for 12 to 18 months) and make all the monthly payments on time.

Otherwise, it may get much worse than before. Your rate can jump up and may end up higher than the one you tried to escape from.

Also, avoid purchasing with the new card immediately, as the low-interest rate may need some time to kick in.

Also, remember that you’ll most probably be charged a transfer fee.

After those equations, if you still feel you’re ready to jump ship, do it.

4. Always get a peer-to-peer lender

Ideally speaking, you should pay off your credit card bill in full. Then you’re free and all clear.

But it rarely happens like that. We are not perfect, and ours is not an ideal world.

So if you can’t manage, you may consider borrowing money from a peer-to-peer lender just to pay your bill.

There are many reputed lenders like LendingClub or Prosper who can help.

5. Make two payments, at least

Credit cards generally charge the interest daily. So, if you pay daily, your average daily balance gets reduced. That ultimately saves a few dollars in interest.

If you’re on a tight budget, pay the minimum due each month if you can, and then try to do the same again two weeks later.

This way, it’s less of a burden if you keep paying the initial minimum-due amount twice a month.

6. Pay in cash

One of the best ways to handle your overall debt is to purchase things the old-school way, using cash.

When you use cash or debit cards, you don’t get that license to buy anything. So you can control your impulses and desires better.

It can help you avoid overspending and give you a reality check ever so often.

You’ll also have a crystal clear view of your income vs. your expenses.

CONCLUSION

Credit cards are a gift and a curse at the same time.

It’s you and your tendencies that make it one of them or the other.

They let you buy even those things you can’t normally afford and give you a long time to pay.

But if you take it for granted, it can sink you into a cesspool of debts.

Additionals

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