If you’ve overspent on your credit cards recently and you’re not sure how to pay it off, you may be feeling worried right now. You may feel as if the light at the end of the tunnel is getting further away as more interest is piled on top of the amount you already owe. However, try not to panic too much. There are steps you can take to tackle credit card debt and get on top of your finances.
Reduce the amount of interest you’re paying
Reducing the level of interest on your credit cards can help you to pay off what you owe more quickly. If you have a number of cards, find out which has the higher interest rate. Since this card costs you the most in interest payments, it’s important to pay as much as you can to this card every month. At the same time, keep paying at least the minimum amount to your other cards. If you’re not sure what the interest rate is on a credit card, take a look at your monthly statement. At the end of it, you’ll usually find the APR.
Increase your minimum payments
Increasing your minimum payments may not seem appealing when you’re struggling with credit card debt but paying more each month will help you to pay it off more quickly overall. You’ll also avoid further interest accumulating on your balance. Minimum monthly repayments are usually set at low levels, so if you can afford to pay more than this amount each month, it’s worth doing so.
Avoid being charged unnecessary fees
Avoiding racking up necessary credit card fees can allow you to tackle your debt much more easily. Charges can be applied to your balance in various situations. For example, if you miss a payment, withdraw cash, or make transactions when you’re overseas. Some of the biggest charges occur when you exceed your credit limit. Fortunately, there are ways to avoid these charges, including setting up a monthly direct debit to ensure you don’t miss payments.
Consider your credit card options
If you’re struggling with credit card debt, it may be time to explore your credit card options. One option is to switch to a 0% interest balance transfer card. Since this will reduce the interest you’re paying, this can help you to clear your balance more quickly. When you transfer your balance to a new card on a 0% balance transfer deal, you can avoid paying interest for a certain amount of time. Often, this is one or two years. Keep in mind that you’ll need a healthy credit score to be able to benefit from the best balance transfer deals.
If your credit card debt is swamping you and you can’t seem to bring down the amount you owe, get in touch with the team at Debt Assist UK. Our experienced debt advisors can offer expert advice to help you tackle your debts and gain financial freedom once again.