Ways to get yourself out of CREDIT CARD DEBT
Having a credit card debt can lower your credit score . And, if your score gets low, it would be difficult for you to get a loan approval for your financial needs. To avoid this, target erasing your debts first.
Calculate The Amount Of Money You Owe Make a list of all your account balances. Add your Debt amount and the interest you're paying against these debts.
Create A Budget Be ready to tighten your expenses. Figure out your monthly expenses and create a monthly schedule for repaying your debts. Ensure you save some funds for emergencies.
Set Auto-debit Mode This is a smart way to pay off your dues. Set up the payments to be made from your bank account the day after you receive your salary.
Look for a credit card with a lower interest rate
If your credit score is good, look into a credit card that offers low Annual Percentage Rate (APR) and see if you can beat your current APR.
Get a balance transfer credit card • •
A balance transfer card lets you transfer balances from your old card to the new card. You can get a balance transfer credit card with an introductory 0% APR or a lower interest rate.
Opt for a lower interest rate loan Sometimes personal loans often charge lower interest rates. If you have a home, you may get a better interest rate.
Avoid making new purchases
Stop spending; instead, use that money to pay off your existing balance. Stay focused and remember your ultimate goal is to be debt-free.
Find additional income If you want to become financially free, then focus on generating extra income.
Work on financial habits Good financial habits are important to build strong finances for the future. Pay your credit card dues & loan EMIs on time, stick to 30-40% credit limit, etc. This will keep your score high.
Follow the aforementioned tips and see how quickly your debt vanishes and how high your credit reaches! Remember these tips for a strong financial life.
To begin your credit journey smoothly, get your free credit report here!
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