How To Pay Off Credit Cards Fast

When was the last time you actually paid cash? More likely than not, every single one of your purchases is paid using the tap of a credit card and given this fact, it’s no surprise that as of 2019, Americans are in more than $1 trillion dollars worth of credit card debt! Therefore, in this article, I am going to share with you 5 of the best ways to pay down credit card debt fast!

Tip #1: Look at your credit card debt in chunks

Let’s face it, the thought of paying down your credit card debt can be intimidating, especially if you have a large balance to repay. For many, this intimidation can lead to total avoidance of repayment altogether but luckily there’s a solution. If you’ve ever gone from a long run, you’ll know that it’s much easier to think of the run as four 15-minute chunks than a full hour run, and this same principle can be applied to your credit card debt. For example, instead of thinking about the $20,000 of debt you owe as a single amount, consider it as four different chunks of $5,000 each. While splitting up your total amount into more manageable chunks doesn’t naturally cause your debt to decrease quicker, it can get the debt elimination process started if the large balance you’ve been carrying has been turning you off from making any size of repayment whatsoever. As a rule of thumb, especially if you have multiple credit cards with an owing balance, ensure you make the minimum payment so that you avoid hurting your credit score which can be very influential on things like getting a mortgage and even securing a job!

Tip #2: Pay down your highest interest credit card first

While it sucks to have debt hanging over your head, the real issue is the exorbitant interest fees you pay when you carry a balance. The average credit card has a 19.24% annual percentage rate which is much higher than you would pay when securing financing for a mortgage or a car. This steep interest rate, when allowed to compound, can turn a $1,000 computer into a $1,500 pretty quick if repayments are ignored. So if you have multiple credit cards with balance outstanding, the fastest way to pay them down is to start with the card with the highest interest rate. By doing this, you will cut down how much you pay in interest on a monthly basis…