3 Keys to Paying Off Credit Card Debt Faster
The average household has over $14,000 in credit card debt. With interest payments and late fees, it seems as though there is no end to the vicious cycle.
As a recent college graduate, I decided to start trying to pay off my credit cards. It is a daunting task, and to keep up my motivation I started doing some research to see what the experts were saying. I found that there are three keys to paying off credit card debt faster and smarter, and I have shared them with you below.
3 Keys to Paying of Credit Cards Faster:
Set Goals. Setting milestones in the process of paying off your credit cards gives you the motivation to work towards an end, rather than going month-to-month. A co-worker of mine set a goal to pay off her credit cards by the time she turned 30- and she succeeded!
Pay down the card with highest interest first. This may seem like common sense to some people, but often times it is difficult to decide between paying off the card with the highest balance or the one with the highest interest rate. The card with the highest interest should be paid off first, as it saves you more money in the long run.
Make more frequent, smaller payments. While you are only required to make one payment per month, splitting the payment in half can make a huge difference. Pay what you can halfway through the month, and again at the end, making payments easier to budget and the amount of debt paid off each month increase.