How to pay off your DEBT in Full credit card/loan, so here we are with our new post on how to pay off your debts, having a debt is more than a burden, people with higher debt don’t have peace of mind. maximum income of a person goes to debt pay off, so its better not to use credit cards first. if you cant payoff the amount in the next billing only, remember delaying a payment will became a big burden someday, one needs to focus on as how to pay these bills on time. so here are few points which needs to consider while planning for paying off your debts.
1. Pay more then the minimum amount – if you are paying for a credit card, don’t pay the minimum amount always pay more then the minimum amount so that it will be used for reducing the balance as well, paying minimum amount won’t help because all the amount you pay will be paid for interest only, your principal debt will remain as it is,
2. Save money for Emergencies and unplanned expenses- Getting out of debt while having nothing saved for the inevitable emergency may leave you running in place. You do all the work to pay down debt and before you know it, the hot water heater springs a leak or your car suddenly needs an expensive repair. Without an easily accessible stash of cash, credit cards may be the only option.
3. Forget your card – It’s nearly impossible to get out of debt if new purchases keep adding to the balance. Consider hiding your credit cards so you can’t keep charging. That can be a little bit easier said than done when shopping on the internet. Some online retailers offer the option of saving your payment information. Decline the option if you have the chance—making it a little more difficult to spend money is often all it takes to skip unnecessary purchases.
4. Pay small amount first – If you have more then 1 card/loan pay the lower balance first. although it seems silly but paying one card’s small amount in full will cheer you up and will motivate you to pay the higher amounts. ex if you have cards with 80,000 balance and other with 25,000 balance pay 25,000 balance card first , when you notice that one of your card is finished you will feel happy as well as burden free,
5. USE credit Card wisely- Following a few basic rules for credit can help you learn to use it wisely. Avoid charging more than you can pay off in one month and always make your payments on time. If you do find yourself with a balance that follows you from month to month, make it a priority to pay it off so that you can use your money to achieve your financial goals—especially your retirement savings goals.