How to Pay Off Credit Card Debt Quickly
January 6, 2022
- Snowball method: Focus on paying off your smallest debt first (while paying the minimum amounts on the others). Once the first debt is paid off, roll the amount you had been paying into payments on the next largest, and so on
- Avalanche method: Pay off your debt with the highest interest rate first (while paying the minimums on the others). Then pay more on the loan with the next highest rate, and so on. This method could save you time and money over the course of your debt repayment plan.
- Debt consolidation: Combining multiple debts into a single loan (ideally at a low interest rate), can help make your monthly payments more manageable. It can also reduce your repayment period.
- Debt management plan: If you’re facing a lot of credit card debt and are not making much progress in paying it off, consider contacting a credit counseling agency. Many are nonprofits and can help you set up a debt management plan to reduce your interest rates and jumpstart your repayment plan.
Tags: Money Management, Budgeting, Savings