Pay Off Credit Card Debt Fast
Credit cards are a practical budgeting tool as they allow you to track your spending and make payments once a month. They can also provide benefits such as air miles and store discounts which can be a useful way to earn extra returns on your spending.
Credit cards can be a real asset if managed correctly, but they can also present nagging problems if your balances get out of hand.
Carrying an outstanding balance on a credit card means your balance is accruing interest until it is paid off, so the faster you pay it down, the less you will pay in interest. When you pay off your balance in full every month, no interest accrues and you can take full advantage of the credit card’s benefits.
Whether you’re worried about your credit card balances or you just want to be credit card savvy, MyFuture can help you learn the best strategies to pay off your credit card debt quickly. Reach out for your FREE no obligation Discovery Session with us today.
Pay Off Credit Card Debt
If you have any credit card debt, whatever you do, don’t bury your head in the sand. Although outstanding debts can be overwhelming, ignoring them doesn’t make them go away and they can come back to haunt you down the road, in the form of poor credit ratings and history which can impact on your ability to lend anything in the future.
No matter how much debt you carry, tackle it head on, develop a financial plan, make regular payments, and do your best to stick to your plan. If you have any issues, seek professional help in managing your debt before your problems spiral out of control.
When you use credit cards, be debt aware by knowing your outstanding balance, your due date, the interest rates on any balances, and any penalties for late or missed payments.
Most credit cards accrue interest on a daily basis, so the faster you pay it off regardless of your due date, the less interest you’ll pay.
This information is available on your credit card statement or on your credit card’s policy documents. If you are unable to pay the balance in full every month, at least try to make the minimum payment to avoid late payment fees.
What Is The Fastest Way To Pay Off Credit Card Debt?
There are a multitude of worthwhile strategies to pay off your credit card debt faster. MyFuture can help you implement some of the best tried and tested methods for credit card debt repayment:
Keep track of your credit cards
If you carry a balance on more than one card, make sure that you always pay the minimum balance on each card. Then, you can focus on paying down the total balance of each card starting with the ones with the highest balances and interest rates.
Assess your interest rates
Focus on paying off high-interest rate cards first to keep the debt from ballooning going forward. A high balance and a high interest rate are the worst combination, but there are useful calculators you can utilise to determine just how much you’ll pay in interest over time.
Make more regular payments
While you usually only need to make one payment a month, you can make payments more often if you have the funds available. Paying more than the monthly minimum will mean paying less in overall interest and help you pay off the debt faster.
Consolidate debt
Consolidate your debt by combining higher-interest balances into an account with a lower interest rate. This will enable you to keep track of your outstanding balance while paying a lower overall interest rate. You can do this with balance transfers, personal loans, or even home equity.
Review spending
Take a close look at your spending habits and see where you can cut back. Paying with cash can help take the pressure off your credit card balances, but make sure you have enough to make your credit card payments. Use any money you’ve freed up to pay off your credit card debt.
Get Ahead With Quality Financial Advice
Our Qualified Financial Advisers can help you achieve your goals with a tailored financial plan and proven financial expertise.
Should You Pay Off Credit Card Debt ASAP?
In a perfect world, everyone would be able to pay off their credit card balance in full every month. If this is not the case for you, make payments as soon as you can to limit the amount of interest you accrue.
Credit card companies rely on charging interest to make their profit but also reward you for paying off on time.
Paying off your credit card balances in full every month demonstrates that you are living fully within your means and you will accrue a much higher credit rating for this reason.
How Much Credit Card Debt Is Normal?
Managing expenses on your credit cards can be a part of healthy money habits. According to research conducted by Finder.com about Kiwis and our credit cards:
- We collectively owed $6 billion on credit cards in 2020;
- Nearly half of credit card users carry an outstanding balance;
- On average, each credit card user in New Zealand owes just above $3,000.
If you’re worried you’re not using your credit optimally or if you have unmanageable balances, reach out to us today to learn how you can pay off your balance and live debt free sooner than you think.
Get in touch with us today for your FREE no obligation Discovery Session and kiss your debts goodbye.
What is our 6-Step Financial Advice Process?
The 6-step financial advice process is the international benchmark for financial planning. This holistic approach is proven to increase the likelihood of you achieving your financial goals.
Discovery Session
This is our opportunity to get to know you better, understand your financial goals (short, medium and long-term), and what resources you have to achieve those goals.
Research & Recommendations
During these steps, we do the research, run the numbers, document and present our recommendations to you. This can be a comprehensive financial plan focused on long-term wealth creation and/or a statement of advice focused on your more immediate financial needs. We will need to verify the information you provided during the Discovery Session by requesting supporting documents such as loan and savings account balances, payslips, etc. This ensures we are using highly accurate information when developing our recommendations.
Implementation
This step is all about implementing the recommendations. We don’t just provide the recommendation; we take responsibility for helping you implement it. This could involve helping you to complete application forms, working with a broker to restructure your lending, or finding you suitable investments. We understand you’re busy, so our goal is to make your financial world as easy as possible by doing as much as we can in-house for you. However, ultimately, we never have access to your money and cannot sign anything on your behalf, so you need to be an active, willing, and ideally enthusiastic participant in this process.
Ongoing Service & Reviews
This is where the real fun begins—managing and tracking your long-term financial success. We have periodic reviews to ensure your strategy is still appropriate if your goals or circumstances have changed. We adjust when necessary and provide annual snapshots so you can see your progress over time. Most importantly, you have your very own trusted Personal Financial Adviser available anytime to help with the little or big stuff. Worried about making next month’s mortgage repayments? Call us. Your parents gave you an early inheritance? Call us. Broke up with your partner and split all your assets? Call us! We’re here for you every step of the way to ensure that whatever life throws at you, you stay on track with your long-term financial goals.
Frequently Asked Questions