Paying down your credit card debt can give you some financial breathing room. With a little time, patience and commitment to a payoff strategy, you can pay down your credit card debt by following these key tips:
- Take inventory. How many credit cards do you have? What’s the balance and minimum monthly payment on each? What’s the total balance? If it’s more than you thought or can afford, it’s time to scale down.
- Check out the “cost” of your credit cards. What’s the interest rate on each card? What’s the annual fee? Does your card offer a grace period? Keep in mind, if the card doesn’t have a grace period, or if you carry over a balance or take a cash advance, you’re usually charged interest right away.
- Get one low-fee or lower-interest card. What’s key here is to use it wisely. Check to see if you can transfer existing debt from your various credit cards to your new lower-interest credit card. Make TruWest your first stop, we offer great credit cards with low rates and great rewards to fit your lifestyle needs.
- Pay more than the minimum amount due. Try to make the largest payment that your budget will allow. Even though you may not be able to pay your balance in full, paying the monthly minimum may do little more than cover the accrued interest.
- Watch out for “teaser rates.” Your mailbox may be brimming with unsolicited credit card offers that promise attractive low-interest rates. However, if you read the fine print, you’ll see that after six months or so the issuer may double the low introductory rate.
- If you get in over your head, don’t bury it in the sand. If you’re having trouble making your monthly payments, contact your creditors before they contact you. They are usually more than willing to negotiate with proactive consumers.
If you have more questions or would like to explore other ways to reduce or consolidate your debt, such as a personal loan or a home equity line of credit, we’d be more than happy to help you. Contact us at 1 (855) 878-9378 or stop by a branch today.