5 Steps to pay off your credit card
When it comes to your credit card/s as long as you pay your bill in full and on time each month, you won’t have to pay any interest on your purchases therefore it’s important to.
- Keep track of your spending.
By only charging what you can afford to pay off each month. Yes it’s convenient to immediately buy things that you need and pay for them later. But don’t go overboard or you’ll have a debt on your hands.
Do this by using your credit card mostly on the purpose of expense it was meant to serve whether you obtained a credit card for business purposes or if you’re a family looking for a credit card account to accommodate your needs.
- Pay your credit card on time.
Because a credit card is a revolving debt that just mounts up. With every late payment made or even worse a payment not made at all. A credit card can cost you a great deal in transaction costs, annual fees and interest charges.
Therefore budget to pay a set amount every month. As your debt reduces, so does the minimum amount you’re required to repay.
- Maximise your credit card repayments
Raise your monthly repayment just a little for an even quicker route to being debt-free. Like try to give something up such as smoking would be a good choice, if you smoke.
Otherwise make a pact with your partner that you’ll have candlelit dinners at home rather than go out; or buy-down on your TV viewing until the debt is paid.
It’s often possible to negotiate terms, interest rates, payment dates and even long-term payment plans and settlements on your credit card debt. You can also try to negotiate a settlement of the amount you owe.
- Check your credit card statement
To correct any errors made, whether if it’s inaccurate late payments or defaults and ask that they rectify the mistakes. Also check your credit report for accuracy of payments made while you’re paying off your debt by settling your credit card account.
Checking your account activity frequently especially if you use your card a lot it’s a good way to make sure there’s no unauthorised activity on your card, whether it’s from identity theft or some other form of fraud.