How to Get Out of a Credit Card Debt Quickly?

Focus on One Card First

If you have balances on different cards, it will take a while before you can declare yourself debt free. So make short time goals in order to stick with the notion of getting debt free. If having one card can make a difference, then focus towards one with the lowest balance.

Throw as much money as you can on the lowest balance card while paying the minimums of others. Change your card utilization rate because your credit score takes a serious hit if you use more than 20 percent of available balance.

If you want to pay less interest, then you better pay off the card with highest interest rate first.

Ask for Lower Interest Rate

Don’t be hesitant, in many cases a simple phone call did the trick. However, it is only possible if you have a good credit score of 730 or higher and you were a long-term customer who made payments on time.

Getting a lower percentage means you can save a lot every year. If you were offered a lower rate from a competitor, then let your customer service representative know. This may match the offer to make you stay with them.

Transfer Your Balance

You may want to move your balance from a high-interest card to a low-interest one. It’s smart as you may end up saving lots of money. But you need to be cautious as you can transfer the balance only if you committed to pay off the debt within a given window with the low-interest rate.

If you don’t make this move, then the interest rate will keep on climbing. Just make sure you pay the installments on time and don’t make any new purchases with the card. Also, don’t forget the balance transfer fee, it will make up to 3-5 percent of the total amount.

Try Peer to Peer Lending

You might think I you pay off the credit card debt; you are off the hook. Unfortunately, that’s not the case, and you might want to consider borrowing money to pay off your card from a peer to peer lending service. These companies offer loans with the fixed interest rate.

The interest rate is 20-30%, which is lower than most credit companies. This means you will end up saving a lot of money on interest alone. In case you have a job and boast a fairly good credit secure, you may qualify for an online loan. Try your luck at findmyiva.co.uk.

If you are in a Pickle, Make Two Minimum Payments Every Month

Card Companies charge interest on a daily basis, so pay off ASAP to control the daily balance. If you are in a pickle, pay the minimum every month, and then make it once every 2 weeks. Keep paying the minimum amount twice every month to get out of your debt quickly.