7 tricks to paying off credit cards faster
Spending on credit cards is the norm for most people. The average credit card debt in January 2021 is £2009 with many households having no savings to repay this and 4 million people only make the minimum repayments each month.
There are many smart ways to use a credit card that can help you to save money and reap the benefits of rewards credit cards. However, if they are used purely for temptation purchases or as a lifeline to cover an unexpected cost, they are being used for unaffordable items and costs.
For some people this type of credit card debt can quickly spiral out of control and they’re stuck with a large debt that never seems to go away.
If you are looking for ways to pay off your credit card faster then you’re in the right place. Read on for 7 tricks to paying off credit cards faster so your debt can stop consuming your life.
1. Always pay more than the minimum amount
This is a given when it comes to clearing credit card debt faster and saving money. Only ever paying the minimum repayment amount on your credit card, when it charges interest, means it will take longer to clear the balance and you’ll end up paying the maximum amount of interest.
As a bare minimum when looking to clear your credit card debt faster, you should always pay more than the minimum amount. Even a small overpayment each month will help to lessen the overall interest.
2. Switch to a 0% interest on balance transfers deal
If you have a good enough credit score then you may qualify for a credit card with 0% on balance transfers for a set period of time.
If you are paying off credit card debt then a smart move is to switch credit cards to a 0% deal every time the 0% deal runs out.
This means you’ll save money on interest and can concentrate on getting your credit card debt down without the interest piling up every month.
There is usually a one-off balance transfer fee, so check this out before you decide to make the switch.
3. Cut up your credit cards to resist temptation
If you don’t use your credit cards wisely and they are simply for unnecessary spending getting you further into a hole of debt, then have willpower and cut them up!
Get rid of the temptation and stop spending money and getting into debt that you can’t afford to repay!
4. Use an online calculator to see the impact of extra repayments
Seeing is believing! Use online credit card calculators to see just how much difference extra repayments will make on your credit cards.
You can use the calculators to see how much of your repayments will be interest overall and the date your credit card will be paid off.
Simply adjust the amount to see the difference an overpayment can make to help you pay your credit card off faster and reduce the amount of overall interest you pay.
5. Talk to your credit card provider
If your debt has become unmanageable or your struggling to get anywhere with high interest rates and only ever scraping together the minimum repayment, then talk to your credit card company.
Most are willing to help and a conversation might be all it takes to get a better interest rate or even a freeze on interest so you can get you repayments back on track.
If you don’t ask, you don’t get. So you have nothing to lose by talking to your credit card company and asking if there is anything they can do to help you clear your credit card debt faster. Avoid crooked credit card debt relief companies and use reputable companies that your credit card provider can signpost you to if you need additonal support.
6. Slash your household spending
If you are serious about paying off your credit card debt faster, then you may be looking at ways to save money around the house. Any money saved can go towards your credit cards as extra payments.
When you have an aim then it makes slashing spending even easier. It becomes a challenge, like a game, that you want to win!
There are many ways to start cutting costs around the home. For example, do you really need a TV licence? So long as you don’t watch live TV or use BBC iPlayer then you don’t actually need a licence and can save over £100 per year - that’s £100 you could put towards your credit card bill instead.
For more amazing ways to start saving money so you can put the savings towards your credit card bill, check out my massive money saving tips section.
You’ll also find some great money saving deals on my UK voucher codes and free money pages. Yep, free money!
7. Make extra income at home to pay off debts faster
If you don’t have any extra income to throw at your credit card debt from your existing job, then how about finding ways to make more income in your spare time?
There are lots of ways you can make extra income from home and many simply require some motivation and an internet connection!
Check out the 19 ways I've made money at home during the lockdowns for some inspiration as well as my tried and tested 60 ways to make money online.
For a fast way to make extra cash from home in the UK then check out my favourite side hustle to make money in my matched betting blog. Not sure what it is? There are videos to explain it simply and step-by-step guides to show you exactly what to do.
By using your spare time to make extra cash, you can help yourself to clear your credit card debt even faster!