Paying off debt as quickly as possible has almost become a life milestone for many people right now. Lots of young adults are looking for ways to pay off debt and many strategies are created daily so that people can overcome this in no time.
In reality, this process should be addressed as soon as possible and it’s good to be aware that it takes time and commitment to pay off debt.
Pay a bit more than what the bank statement says
If you always pay the minimum balance on your credit cards or loans, it will take more time to pay them completely. If you try to pay a bit more than what you have to, that little extra will come straight off the overall balance, which means that you’ll pay less interest.
Banks have that information in their statements so you have a clearer view of where that extra something will go and how much overall interest is going to reduce. Paying a little extra is not always an option but you must know that even if it’s not all that much, it still counts up to paying your credit card debt off sooner.
Consolidate your debt
If you have several types of credit with high-interest rates, you can consider combining them into just one with a lower interest rate. It is indeed a fast way to pay off your debt and you won’t be increasing any payment amounts. Many options are available to perform this, so make sure you check with different financial institutions.
Remember that if you do this, you need to have a keen sense of responsibility. The last thing you need is to build debt on top of what you already owe. Again, check with your preferred financial institution to see when they have low balance transfer rates and then move high-interest cards over there. Of course, there’s a transfer fee but you’ll be saving a lot more than that in the long run, so it’s certainly worth that one off fee.
Sharpen your budgeting skills
Budget making is always a good strategy to give you more control when handling personal finances and your income. If you want to pay off your credit card debt in no time, the best solution is to start re-prioritising your budget. You can start by adding order to your budget with categories, so divide your income into food, rent, entertainment and so on.
Looking at bank statements can give an idea on how to organise your budget, after that you can start identifying areas where you can make cuts, then take the money you’ve freed and then start using it towards paying outstanding credit card debt.
One debt at a time
If you have more than one credit card debt, make sure that you always keep up with the minimum payments on time for each card. After that, you can focus on paying off the total balance of each card but it’s a good idea to do it one card at a time.
Make sure that you look at all of your credit card bank statement to find the one that carries a higher interest rate, then put all your efforts into paying that one first.
Another approach is to focus on the card with the smallest balance first, then use the money that was destined to pay that one, to pay for the next one with the smallest balance.
Find ways to boost your income
Probably the best way to reduce debt and paying it off quicker is by having more income that allows you to make more payments thus reducing balance interest and debt itself. Find out ways in which you can have access to different sources of money.
Right now many people are just realising that they were victims in the PPI scandal in which banks mis-sold insurance policies to their customers and never bothered to tell them.
This happened for almost twenty years and now the government is making them give the money back and the final date for customers to make a claim is the 29th of August 2019.
If you ever had a credit card, mortgage or loan in the past, chances are that you were charged with a PPI you were not supposed to pay. You can quickly find out here if you could claim the money that is rightfully yours.
This money can be used to pay off debt once and for all, so you can have more peace of mind and concentrate on fulfilling your dreams and ambitions.