You must pay the debts to save some money for the future goals.  Credit card accounts for the costliest accounts to settle. It hosts high interest and penalties if you don’t pay it timely. It increases the overall amount to pay. Therefore, the more you delay, the more amount you pay. Counter the most expensive ones first. It may mean concentrating more on needs than wants.

It increases the savings potential and helps you achieve your goals without worries. The blog lists more such strategies to pay off credit card debt. Individuals with multiple debts and payments may benefit from the blog.

What should you know about credit cards basically?

When you take up a credit card and use it for purchase, you must repay the dues monthly. You usually get the bill/statement at the month’s end with a due date to pay.  Here are other facts that you must know about credit cards:

ü  If you pay the full amount by the due date, you don’t pay interest

ü  You pay interest on cash withdrawals from credit card

ü  If you pay a minimal amount than the actual balance, you pay interest on the rest amount you owe

ü  Interest rates on credit cards typically are 22.1% on a variable rate. It includes the stamp Duty tax of €30. 

ü  An APR of 24% is higher on a credit card.

What is the best and quickest way to pay a credit card debt?

The snowball debt repayment method is one of the quickest methods to repay credit card debts quickly. In this, you can begin by paying the credit card with the lowest debt amount first. Next, switch to paying the next lowest credit card amount, and so on.

Eventually, it helps you repay the credit card dues. You can prepare a list of the credit cards and the amount you owe on each. Calculate the total amount to pay on each by including the principal, interest, and late payment penalties. 

Alternatively, you may consolidate debt into a single payment module. However, it may require you to save a huge amount monthly affecting basic requirements.

For instant cash needs, check fast loans in Ireland’s marketplace. It will help you get cash instantly and handle the emergency cash requirements timely. You don’t need to deal with detailed documentation or provide a guarantor. Instead, you may get it by just providing a valid earning proof.

How to clear your credit card debt faster?

Yes, there are other ways to settle the credit card debt quickly than just consolidating debts. For example- contact your credit card provider and explain your financial situation. He may help it negotiate up to the amount you may afford. It is only if you do share a positive and responsible financial history earlier. Here are other ways to settle the credit card debts quickly:

1)     Use a balance transfer credit card

A balance transfer credit card helps you transfer all your credit card debt to a single card. It just works like a debt consolidation loan. However, the interest rate is higher than a debt consolidation loan here. You can still benefit from this if you have an introductory balance transfer card. You can use it to transfer the balance of 7-8 credit cards to it. You don’t need to pay any interest until the loan introductory period. However, after that, you must repay the amount due to the creditor. It gradually reduces the interest and is easy to manage.

2)     Pay more than the minimum amount

It is one of the ways to get rid of the credit card debt quickly.  Instead of paying the basic amount, you can pay more. It is not advisable to pay more than the minimum in every situation. You can consider it if only your creditor allows you to do that.  If he agrees, you may be able to save money on interest. In this, you pay interest on only the missed payments. It is a good option when you are neck-deep in debt. 

Eventually, this initiative will help boost your credit score.  Here is the table that reveals what your payment structure may look like after paying more than the minimum payment.  Assume that you owe €2000 of outstanding balance at an APR of 20% with a minimum payment of 3% of the outstanding balance or 25- whichever is higher. Here is what your payments may look like:

Thus, you can see that making a minimum payment only would not help. It keeps your liabilities the same or increases them. Alternatively, paying more than the minimal amount helps you clear the dues early.

3)     Set direct debits for costly ones

It is one of the best ways to get rid of credit card payments quickly. Analyse the ones that you can set direct debits for. It could be the credit cards with small balances. Setting direct debits prevents you from missing the deadline or attracting penalties.

Instead, it makes things manageable for you. Make sure to use the account with direct debits for credit card payments only. However, you must ensure a minimal balance in the account for the direct debits to work. It takes away the hassle of remembering every payment. If your income falls and you cannot save enough in the direct debit amount, don’t worry.

You can request to close the CPA for a while. Next, take up online loans for bad credit in Ireland to repay the scheduled debts. You may need one, as pending payments affect the credit score. It is better to use the facility than to attract huge interest later. You may get the heavy amount you need to clear multiple payments. However, your income must meet the criteria for that.

4)     Reduce your credit utilisation ratio

Credit utilisation is the ratio of the available credit limit and what you use for your needs. Exceeding the limit may make it challenging for you to clear the credit card debt. Instead, try to improve the credit utilisation ratio by:

ü  Getting a high paid job

ü  Reducing unnecessary expenses or balance wants

ü  Avoid seeking new credit cards meanwhile

ü  Be regular with the bill payments

Bottom line

These are some tips that may help you repay the credit card debt without hassle. It is more about understanding your personal finances. It will help you understand how much you can realistically pay towards the debt.  Set direct debits for the high-interest credit card debt.

Negotiate the deal with the creditors. Check whether they may reduce the amount due to your poor financial condition. It may help you repay a lesser amount overall.