It is not easy to remember the due dates of payment of all the purchases you have made using your different credit cards, leave alone managing a large unpaid balance running in them.
Millions of American men and women remain preoccupied with arranging money to pay interest to their credit card companies for the money that they have used up for their various purchases. These people continue to receive credit card statements that ask them to pay minimum amount to stay off the hook.
No matter what the reason you availed money through credit cards, this minimum due payment will continue to haunt you for a long time until you are ready to change the strategy.
1. Start with One Card at a Time
Instead of trying to finish debt in several cards at the same time, it is easier and practical to wipe out balance in one card at a time. Choose one with least balance or if you are desirous of paying less in interest, choose one with highest interest rate.
2. Negotiate with Credit Card Companies
It is a good way to talk to your credit card companies and explain your difficulties. Ask them to lower their interest rates to make it easier for you to stay afloat. If your credit score is good, you may be surprised to find that your request has been accepted and interest rates lowered by a point or two.
3. Transfer Your Outstanding Balance to Another Credit Card with Low-Interest Rate
This is a smart move as it lowers the amount you pay every month to several credit card companies. It also gives you peace of mind as you only need to remember one date and amount that you have to pay every month.
4. Get Loan at Fixed Rate
This might sound bizarre to many but getting a loan at a lower and fixed rate of interest to pay off your entire balance in credit cards is a good idea. There are many lenders offering loans at fixed rates of interest that can help you save hundreds of dollars annually.
5. Pay Fortnightly Instead of Monthly
You end up paying more to your credit card companies if you wait for their statement to make minimum payment due. This is because these companies add up interest on daily basis. You can save a few dollars if you decide to pay to your credit card companies in 15 days rather than paying on a monthly basis.
6. Pay More than Minimum Payment Due
Credit card companies are only interested in interest and they love it when you only make minimum payment due every month as your outstanding remains at the same level. Make it a point to pay a little more than minimum payment due to see a positive difference in your statements in a short time.