There are a few commonalities when it comes to Americans and sadly one of them is debt. The most common type of debt is of the credit card variety. Carrying a balance is something that millions of people do each and every month.
Thankfully, there are a few basic tips when it comes to paying down that credit card debt. Before long, you can have that debt under control and even pay it all off.
Target One at a Time
It is impossible for most people to pay off all of their credit cards at one time. This is why focusing on a single credit card and paying that off can be so effective. When you carry a balance on more than one card, make sure to make the minimum payment each month.
From there, make sure that you are paying more toward the ones that have a higher interest rate. This way, you pay that one off first and can move toward paying off the rest of your credit cards that have lower interest rates.
Pay Above the Minimum
If you can, make sure to pay more than the minimum each month. Though the minimum is there, paying more will mean chipping away at the overall balance sooner. Why is that so important? Because you can cut down on the amount of interest that you wind up paying.
It isn’t necessarily the balance that causes damage for people, it is the interest payments that accumulate throughout the months and years. Pay above the minimum when possible and you can cut down on that debt quicker.
Debt Consolidation
There is also the possibility to consolidate that debt into one payment. By taking out a debt consolidation loan, it means putting all of that debt into one manageable package to pay it off with a single monthly payment.
The caveat here is that if you have bad credit, it may be tougher to get that debt consolidation loan. Still, it can be a great shot to clear all that debt at once.