Stop Using Credit Cards
The first step to start paying off credit card debt is to stop using it. Stop now! Remove your credit card. If necessary, cut all credit cards into two parts. By stopping using a credit card every time you make a payment, you will not constantly increase the amount of debt. Pay off debts according to the current amount.
Pay the debt with the smallest amount of
Do you have credit card debt from several different banks? Focus to get rid of credit card debt with the smallest amount of advance. This would make the next payments so much easier. Or, you can also choose to pay the debt with the greatest interest. In doing so, the amount will not be ongoing swell.
Use the savings and Investment
If there are savings and investments that can be disbursed, use these two things to pay credit card installments first. Ideally, savings and investment are prepared for future needs. But if the situation is urgent, it is better to eliminate the existing bill first. Next, you can start saving for future needs again.
Pay more than the Minimum value
Try to always pay credit card more than the minimum in order not to be exposed to interest rates. If it does not pay the corresponding minimum value, you will have the rest of the Bill. Well, the rest of the Bill who has interest can instead be more damning than the value of the principal debt itself. When there are more appropriations that can be used, the wear to pay credit card debts more than value should be.
This is part of how to pay off credit cards. While struggling to pay debts, you must learn to manage your budget better. Remember, buy items as needed. Prioritize needs according to ability. Forget buying or paying for something that is not born or not, turn on the example, recreation every month, buy jewelry, buy the latest gadgets, and so on. Don't keep relying on credit cards because this waste is not good for life.
If indeed there are no funding sources such as savings and investments that can be used to pay debt, inevitably you will have to add revenue. This is mandatory because of the ruling, while paying credit card debt, there are still a number of repayments and other requirements that must be met. How to increase your revenue can be varied among other things create a business online is simple, add Office hours at the Office, or search for freelance projects side on various websites.
He tips and how to pay off credit card debt properly. Avoid ways that will only solve temporary problems but instead increase obligations later on, such as balance transfers (moving debt to a new credit card with a smaller interest), mortgaging valuables, or borrowing from family and acquaintances. Make sure you are disciplined and fully committed to settling credit card debt that has accumulated. If not, this will make it difficult for you in the future.