We as a nation are pretty bad when it comes to credit card debt. Credit cards can be pretty easy to get, but when not used wisely, it can lead to debt and can spiral out of control with the fees and interest that you might end up paying. When you keep paying interest month after month, and only pay off the minimum amount on your credit card, then it can mean a long time having the debt around your neck. Interest is the worst and means you’re spending way more on things than you would have ever planned to. So if you want to be paying less interest and be gaining more interest with money in a savings account, then here are some tips and tricks to help you.
If you’re keen to clear debt, and you have it in a variety of different places, then looking into a debt consolidation system could be the key. If your debt is spread out over a few credit cards and perhaps a loan too, then you are paying three or four lots of interest each month. Who wants to be doing that? So you could look into your debt consolidation options at a site like consolidated.credit, for example. But in basic terms, it means putting all of your debt into one place. It can be simpler to deal with when it is all together. Plus, more often than not, it means that the overall interest that you pay each month is less. For people with a variety of cards that are maxed out, then this could be the option for you.
You might be surprised to hear that credit cards can help you to get out of debt. Again, this is only when used in the right way. Many cards will offer an interest-free period when you open a card with them, including balance transfers. You can see some examples at moneysupermarket.com if you’re unsure what I mean. But if you have a credit card that you can’t pay off in full, then this could be a better option for you. What it does is allow you some extra time to just clear the debt, rather than having to pay interest for six months or so. This is only going to benefit you if you can clear the debt within the interest-free period. Otherwise, it is likely to go up to quite a high rate after that period is over. So budget well and this would help you.
Set Up Direct Debits
If you often forget to make payments on your card or you miss the payment date from time to time, then you’ll know that you can get charged a fee for a late payment. So you want to avoid that where possible. By setting up a direct debit for the card, it will automatically take payment for you. This is a good way to make sure that it gets paid each month and that you don’t incur any additional fees.
Good luck on your debt-free journey!