Are the rising costs of groceries leaving you with precious little money to pay for your credit card bills? Or maybe you’re just tired of signing EMI cheques for lovely family vacation you took – two years ago.
The situations may differ, but by and large expenses continue. Everyone was to have a sound financial background with no debts to pay and a sizeable amount of cash inflow and investments tom support emergencies.
But is it possible to pay off lakhs in a short period? Yes, if you’re willing to do what it takes. Most of the time we act pennywise and foolishly, we do not realize a paisa saved is a paisa earned. A little scrimping and penny-pinching today will save you from heavy debt and interest charges down the road.
Pay off your credit cards in a timely manner, as and when you have idle funds may as much you can stretch cut off unwanted expenditure by prioritizing your needs. You must not go strictly by the “minimum monthly payment”.
Paying the minimum amount required by your credit card company will do nothing to get rid of your debt. In fact, it could take decades before your cards are paid off with minimum payments.
Every time try to double or even triple credit card payment each month. It may be sounding scary, but dear friend this is the surest path you can be debt-free tomorrow. You have to just make some small changes to compensate your debt balance which you have to pay up. It’s difficult but still you have to leave luxury for some time and live a simple life only till you improve your credit worthiness.
Plan before hand for your fixed expenses like control outside food and start cooking at home, try and negotiate low interest rate on your credit card, reduce your utility bills, don’t buy luxury items for which you have to pay monthly charges like laptop on monthly installment. Ones you start cutting all other expenses it would help you to get rid of your credit card debt.
Another option which is available is if you are unable to pay your credit card dues at one go, ensure that you always pay at least the minimum due amount, generally 5 % of your outstanding. In the meantime, find a concrete solution.
You have various options – you could apply for a loan against property, stocks, insurance policy or jewelry. Or you could take a personal loan and pay off the credit card outstanding. Just remember that the rate of interest for a personal loan is higher than all the other mentioned options.