The average balance on a credit card is now almost $6,200, and the typical American holds four credit cards, according to the credit bureau Experian. But even if you’re feeling mired in debt, you can start taking steps immediately to extricate yourself from monthly interest payments and credit difficulties. With these ten tips on the next page, you can pay off your credit card faster and achieve the freedom you’re craving.
1. Get Organised
2. Identify the Card with the Highest Interest Rate
Many people feel overwhelmed by the goal of paying off their credit card debt, especially if they have balances on multiple cards with them. Simplify the situation by identifying the card with the highest interest rate. This will be your starting point. By paying off this balance first, you save money on interest, which can then be used to pay off other cards.
3. Pay the Minimum Balance on All of Your Cards
Instead of trying to add extra payments to all your cards at once, you pay the minimum payments on all your cards, except for the card with the highest interest rate, which you have just identified. By keeping track of them all, you avoid late fees and keep your reimbursement costs low.
Continue reading on the next page the best strategies to pay off your credit card faster.