Most people with credit cards debts try to pay off the minimum amount due every month. But if you continue to do so, you won’t be able to pull yourself up from the sea of debt. You will be shocked to know that if you have a debt of $15,956, then you will end up paying interest worth $11,000. So, the wise thing would be to pay off more than the minimum amount whenever you get a chance. Here are some smart ways of paying off your credit card debt.
Start with one card
If you have multiple credit cards, then start paying off the total amount of one card first instead of paying little amounts on every card. Choose the card with the highest interest rate first, while making the minimum payments for the rest of the cards. This way, finish paying the debts for each card at a time.
Request for a low interest rate
If you are an old customer of the bank and if you have good credit score then that bank can do you a favor. You can get a low interest rate for your credit card if you request them. This will significantly lower your credit card bills every month.
Many credit cards offer balance transfer with low interest rate. If you have multiple credit cards then you can easily consolidate all these cards and transfer the balance to the new card. This way you have to pay only one bill and at a low interest rate.
The trick is to pay off the credit card bills as quickly as possible in order to pay less interest. You should bring some changes in your lifestyle as well and keep the use of credit card to a minimum.