Overview
A persistent and growing gap between wages and prices has Canadians struggling to pay for their expenses. Many Canadians rack up credit card debt to help them keep up with the cost of living. According to one report, more than half of Canadians carry credit card debt. High-interest credit card debt results in high levels of stress. Here are five smart tips to pay off your credit card debt more quickly.
Tip #1: Pay More Than the Minimum
Paying more than the minimum amount on your credit card(s) will help you make a dent in the principal amount owing. If you only pay the minimum amount, you will only be paying the interest and not making any headway on paying down the principal. Make sure to set aside a sufficient amount in your budget for greater-than-minimum payments.
Tip #2: Use the Snowball Method
The snowball method entails paying down your smallest debt first, followed by larger debts. By paying your smallest debt first, you may see progress more quickly. This may give you a motivational boost and help you stay on track. Stay consistent, and results will follow.
Tip #3: Use the Avalanche Method
The avalanche method has you start with your highest-interest debt. While you pay down your highest-interest debt, you must continue making the minimum payments on the other debts. You will work your way down to less expensive debts once the most expensive debt is paid off.
Tip #4: Automate Your Payments
Automating your payments may help ensure that you do not miss any payment due dates. That can help prevent you from accruing additional fees and charges and make progress more steadily. If you have a history of missing payment due dates, automating your payments can be a big step forward.
Tip #5: Consider Debt Consolidation
Debt consolidation allows you to combine several different debts into a single debt, potentially at a lower overall interest rate. It may help lower your stress levels as you will only have to deal with one creditor and one debt at any given time.
Conclusion
The above tips should help you pay off your credit card debt more quickly. As an alternative way to cover urgent expenses, apply for a personal loan online via LendProConnect. We don’t check your credit score or credit report during our simple and quick online application process. To monitor your credit score and automatically detect any mistakes on your credit report, sign up for Credit Verify! The registration process is quick and easy.
