Credit card is not a new term for most folks of the 21st century. Almost 90% of the people in the entire world have held at least one credit card. But another percentage of people believe credit cards to be of no use as it increases their debts at the end of the month, so they go for loans instead. But the truth is, credit cards are far better than taking loans over your head as their debts are more accessible to pay off and easier to handle than loans. In simple words, credit cards can do wonders in your life only when used wisely!
If you are stuck in a situation where you do not know how to pay off your credit card bills, you are on the right page. The following article will provide you with valuable tips on how to pay off your credit cards debts in the quickest ways possible.
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Credit Cards – Good Investment or Bad?
You can consider credit cards a good or a bad investment depending on how you plan to utilize them. For example, you can use your credit cards on groceries and other critical medical bills, significant investments, etc. These are indirect forms of loans that you get from certain central banks for getting some help with your expenses for the entire month. You usually have to pay off the credit card bills by the end of the month, which should not be a great deal because you get the entire month to plan and calculate way outs for saving and summing up the amount by the month-end. But if you decide to go shopping on a spree depending on your credit cards, you might get into serious trouble.
This is the case with most people who hate credit cards for not being able to pay off their debts. As a result, most of them take loans from other central banks to pay off their credit card bills; thus, the cycle of debts continues and eventually grows longer!
But now, it is time to end all your miseries with the help of specific unique ideas and tips that will help you pay off your credit card bills in the quickest ways possible. The following points might be of great help. Here you go!
Tips for the Quickest Way to Pay Off Credit Cards
1. Make a Note to Think Small:
When it comes to certain life decisions, you need to keep patient and not lose your calm. The moment most of you get to see the enormous credit card bill at the end of the month, you start scratching your head off and get panicked, staring at the bill. It is unnecessary to do nothing but stare at your credit card bills. Instead, you can sit down, plan out things, and make proper notes. What you need to do first is categorize all the payments you have to make based on the rates of interest on each one. It would help if you tried to pay off the ones with more interest rates first and then go for the smaller ones.
You can try dividing the more significant amounts into three to four divisions which can make you pay off the credit card debts properly on time!
2. Prioritize:
One of the best ways to keep you out of trouble with your credit card bills by the end of the month is to make a list and calculate the debt amount according to the priority factor. Of course, you have to find out the one with the highest interest rate first. It would help if you tried to pay off the one faster with more interest than the one with a more considerable amount, as that would save you from unnecessary interest bills over the due amounts.
It would help if you kept another thing in mind, which is not to pay off the debts with smaller amounts first as it would elongate the vast amount of bills you need to pay in the upcoming months as a burden. The riskiest factor is that the banks keep track of all your expenses. If you continue to spend carelessly in the same way through your credit cards in the mere future, it would reflect in your credit card score and make the banks suspicious, making them suspend your credit card in the end!
3. Pay the Card Debt with the Most Minor Balance:
Another tip for all the credit card users out there can be to pay off the bills on the cards with a minor balance. There are times when you use more than one credit card from different essential banks. At the end of the month, you get nothing to do besides crying over your bills which is not a logical solution to your problems!
You can pay off the bill with more interest first and then focus on the card bill with the minor balance. If you simplify the logic, every credit card has a specific balance limit until you can spend a month. If you end up exhausting most of the balance from one of the credit cards by the end of the month, you can try to put it second on the priority list to pay off that bill next, as it might ruin your credit card score. If you plan it out this way, you will get relief from your debts in two crucial ways in two significant steps at the same time!
4. Get a Credit Card with a Low APR:
If you are a new credit card user, you should be aware of the APR you need to pay at the end of the year. Every credit card has a specific interest rate from the bank, which you need to pay at the end of the year to pay off your debts to the banks. Sometimes, the interest rate is pretty high on certain cards with higher expense limits. You can quickly get rid of such high-interest charges if you have two different credit cards. For example, you can have one with a larger limit and another with a lower limit. Then, by the end of the year, when the bank would charge you with the interest rate on both credit cards, you can quickly transfer the higher rate of interest to the one with a lesser rate of interest. This way, you would get to save a lot of money by the year-end!
5. Take a Loan Wisely:
If you are well aware of the rules and regulations of credit card bills, then you would know the knits and bits of EMI facilities too. However, there are times when you notice that the massive bill on your credit card is impossible to pay off at once and too tiring to pay off with EMIs. In such situations, you can check your credit card score. If you happen to hold a good credit card score, you can easily ask the bank for a personal loan and pay off the massive debt. The rate of interest on personal loans is lesser than on credit cards. You would not even have to pay unnecessary claims of credit cards on EMIs. According to the type of payment you make on your credit card, you would have a better credit score which will benefit you later on by getting a chance to pay nominal EMI amounts in mere future!
6. Convert your Outstanding Payment to EMIs:
It seems much of a burden to pay off the outstanding credit card bills at once. You can easily ask your bank branch to convert the unpaid bills on credit cards to EMIs so that you can pay off the debts slowly but steadily with time. The bank would provide you a specific tenure in which you have to pay off the EIs with a nominal interest rate on time. The bank has also got a facility where you would not have to visit the bank every month to pay off the credit card bill via cheque. You can apply for the automatic deduction of the statements on EMI facilities through your bank accounts.
7. Pay Off your Credit Card Bills Regularly:
Last but not least, advice to all the credit card holders out there is to pay off the credit card bills regularly. There is no running away from credit card bills anytime. You need to sort out your finances first and then plan your investments from credit cards. You can put the regular expenses like wifi bills, gas bills, house rents, groceries, etc., on your credit cards and make individual payments for the rest. When it comes to certain huge expenses like vacations, hotel room bookings, flight ticket bookings, etc., you can always stick to credit cards for those payments as you can quickly get various exciting offers and discounts available on credit cards for these expenses all the time.
The best way to prevent from carrying on with your credit card debts is to pay them off as fast as possible. The more you drag the bills, the more you get into the vicious cycle of debts.
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