Being in debt, regardless of how much you have to repay, is a stressful experience. Once you sign up for a loan, you are obliged to pay it back it no matter what circumstances may come along the way—whether you lose your job, get into an accident or get seriously sick.
Many people try their best to get out of debt, but life gets in the way that it takes them so long to repay the debt or oftentimes another necessary major expense arises that they need to use another swipe instead of slowly paying it back.
However, that doesn’t have to be your case. There are so many people who get out of debt every day, and not just that, they’re getting out of their debt in an unexpectedly short span of time.
Here are five ways to help you get out of your credit card debt pronto.
1. Pay your credit card bills every payday
This means paying your credit card bills twice a month. If you owe a lot on high-interest credit cards, it’s ideal to make your payments at least every two weeks. This will cut the interest as your debt reduces.
2. Aim for the highest interest rate first
Tackle the high-interest debt first, even if you owe the least amount of money in that particular credit card. If you must, pay the minimum on your home equity loan while you’re aggressively paying back your credit card debt. You will save a good amount from the interest in the long run.
3. Resist the pre-approved credit card offers
Banks here in Singapore know very well how to attract new customers. Stay away from those offers. Once you fall into the trap, there’s no other way around—you are going to run up some more debt.
4. Avoid writing notes
Skip writing notes to your bank and enclosing with it your payment. Companies will take the note along with the cash or cheque attached to it and reroute them to different departments for days. This will give your bank more days to charge you with interest for the delayed payment.
5. Negotiate for lower interest rates
If your credit interest rates are just too high that it feels impossible to headway on the remaining balances, it’s worth trying to call your credit card issuer and negotiate for lower interest rate. This is quite a common place to start with. And if you have good credit history of paying your credit bills on time, there is a good chance of getting lower interest rate.
Regardless of the type of debt you have—student load debt, car loan or something else—it’s important to plan for your safe way out. Paying back all your debts may not happen overnight, but a debt-free future is always possible if you formulate a plan—and stick with it until you have completely paid it all off.