How should you manage to pay your credit card dues as fast as possible without getting entangled to high interest payment? Here are the few points suggested by the Financial Experts in achieving the best result while making such payments.
Step 1: A powerful tool used to stop paying high interest in card payments:
Take the example of a patient running to a doctor with high bleeding. The doctor primarily ensures to stop the profuse bleeding and then thinks of other treatments. It is similar to the situation that someone carrying a credit card balance is like a patient who enters an emergency room bleeding badly. The apt ways to address this are:
Use the bank’s marketing offers which finds
- A card offering a long “0%” introductory balance transfer offer
- Promotional offer
These cards provide new customers a long period of time say more than 18 months and during this period, no interest would be charged on all balances transferred to it. Precisely, note to buy a card which offers the longest possible no-interest period while charging low or even no fees.
Step 2: Power Through Your Balance During The 0% Period.
Now that you have transferred your balance and thus reduced the interest burden, it is time to ensure that you take advantage of the interest free period, to get free from the debt. To do this, ensure to keep making payments which you were hitherto making towards interest, the only difference is that all the payments made by you will now go towards reducing the actual balance in the account. To quote this with an example, let us say that you are transferring USD.10,000 to your account. The following explains the same through a graph.
If you transfer this USD 10,000 to your a card which offers 15 months of 0% introductory offer of a loan with no transfer fee, and maintain $200 monthly payment, you can see how much faster you’ll be reducing your balance in the chart below.
As you can see, without using the 0% card, the same $200 monthly payments barely bring any change. It’s like swimming upstream, or walking while taking a step back for every two steps forward. Please note that it is not the way to swim or walk, or making an attempt to pay off your cards while paying high card interest rates. Move your balances onto one of the cards below; stop getting crushed by interest, and start making real progress toward getting rid of your card debt.
Thus, try to maintain this 0% interest on purchase or a balance transfer and thus, ensure to bring your financial picture under control, just by using the available tools in the market.
For people who want do away with high interest credit card debt, this is one of the best option available.
The main advantages of such cards are:
- They offer 0% intro offer.
- They also provide option of Balance transfer
- Cash Back rewards on the payments made