How to pay off credit card debt

Credit card debt is a technology enables debt which is not easy to pay off. A good percentage of people are fighting to pay off their credit card debt quickly. How much you ignore it, it will haunt you each night you sleep. It may sound daunting but you have to pay it off anyhow to maintain your budget and dignity. Following strategies may help you.

  1. Pay more than the minimum payment: The monthly payment of the credit includes interest only and it barely includes your principal amount. A detailed look at your current credit card statement will prove this fact. If you start paying a bit more than your interest, pay more so that it goes into the principal amount.
  2. Pay off the debt which has higher rate of interest: Prioritize paying off the debt which has higher rate of interest. If the interest rate on one credit card is 11% and interest rate of second is 9%, shift all your focus and attention to one with higher rate of interest. Once it is gone, you will be free and satisfied. Repeat the same process with other credit card as well.
  3. Talk to your credit card companies: You can talk to the executive of your credit card company if they can lower the rate of interest for a time being or if they can provide any waiver on current late fees. If you do not succeed with executive, you can talk to the supervisor. Always remember that hard word pays off.

Do not close card with any existing balance: Closing the card is an easy way to deal with the debt but it will drive down your credit score. Make sure to close it in a proper manner, on your request and not on theirs.…