Lower credit card debt

A 5 step guide to lower credit card debt

Using a credit card to pay for purchases can sometimes create a sense you have more money than you do. And, more often than not, it’s just way too easy to use a credit card and forget about the charges until the bill arrives.

Instead of getting stressed, here are some steps to manage your bill payments and stay on top of your credit card spending.

Step 1: Add the power of $10 to your payments

By adding an extra $10 to the minimum payment on your credit card you can cut your payment time almost in half and pay off your balance sooner.

Step 2: Take advantage of 21 days of grace

Pay the full amount on your credit card if you can. If you cannot, be aware that you’ll be charged interest going back to the purchase date (not the credit card due date). For this reason, it’s always wise to pay as much as you can sooner.

Step 3: Use your reward points for financial redemptions

Some credit cards allow you to use the cash from your points to reduce the debt on your credit card or to pay down other debt. Ask if this is an option and consider taking advantage of this opportunity.

Step 4: Understand how your credit score works

Spending close to your credit limit all the time can be a sign to creditors you’re over-extending and can have an impact on your credit rating. So, don’t make a habit of getting too close to your limit.

Step 5: Make sure your credit rating is accurate

It’s estimated up to 40% of credit reports contain an error. Check your credit report every year. If you find an error, contact the creditor or credit agency and have it corrected or it can impact your ability to get credit in the future. Contact the following trusted sources to get a copy of your credit rating. Equifax or TransUnion.

 

And now a note from our lawyers…

This blog post provides general information only, and does not constitute financial, accounting, tax, legal or other professional advice. We encourage you to obtain personalized advice from qualified professionals regarding your particular circumstances. Please see our Terms of Use.

 

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