10 Ways to Pay Back Your Credit Card Debt


Debt can be a four-letter word, but it can haunt you in every step that you take. When it
starts taking control of your life, your emotional, as well as physical health,gets affected slowly and gradually. Irrespective of your higher debt amount which looks very difficult to come out of it, you can deal with any debt by taking one step at a time. There are certain strategies that need to be adopted to pay the overburdened debt troubling you for a long time.

here are the 10 ways to pay back the credit card debts :


Setting s Smart goal

It is easy to run up on your bank balances in a short period of time, but when it comes to paying back, it takes time and self-discipline. It is necessary to have a farsighted goal to pay back the money rolling in your head as debt.
One such way is to set a SMART goal which is Specific, Measurable, Attainable, Relevant, and Time-bound. By dividing your debt into these fragments, you can surely be able to repay any amount your liable to bank through credit card.

Cut down on expenses to free-up the cash

It may not sound easy to adhere to cutting down your expenses, but it will definitely help you in the long run to repay your credit card debt. You can reduce your spending on non-essential things and only concentrate on highly essential monthly expenses. If carefully done, you will realize a good amount of money can be saved if you start cutting down on irrelevant expenses.

Make a monthly spending plan

In order to get away with your debt and stop spending money on your credit card, you will need to make a monthly spending plan for your money. It will not only help you to live within your buying capacity, but it will also assist you to target the set period to get yourselves completely free from debt.

Use savings to cut down the Debt

If you are saving money by contributing monthly/ yearly on a savings plan, you can use
this money which would help you pay the money you owe. The money saved by
paying down your debts faster can be much higher than the interest you will
earn through a bank savings account. Money received as an income tax refund, hike in pay and other unexpected income can be used in repaying your debt, which will considerably lower down the debt amount.

Set your credit card in ice

Though it is difficult to put your credit card in the bucket of ice, it can help in getting away from the credit card in your wallet and take control over the temptation of using it. It will help you to pay in cash for your purchases and separate your needs from wants, and remain very
cautious about your spending by letting you think twice on your spending habits. Once your credit is paid, the best way to never again get into debt would be to cancel the credit card and close the account.



Going for a debt consolidation loan

Consolidating your debt through consolidation loan can be a good option to get your debt paid and transferring the loan to the bank with lesser interest rates. The credit card thereafter needs to be cancelled, to avoid any temptation to use it again for purchases. Unfortunately, debt consolidation loans have not benefited a larger number of people, because not all people stop using their credit card to stop any further increase in debt load.

Adopt the snowball method

Another method used by a large number of people to cut their debt is by paying off small amount on credit card first. In this way, many people tend to have a psychological effect on their debt getting reduced and feel motivated to continue paying off the money whenever the extra savings are available. Using this method one can just focus on to paying the smallest balance on the credit card first, ignoring the interest rate and just focusing on the card, will get you some satisfaction as well as motivation to consistently keep doing it to pay off the complete debt. If you have a debt on multiple cards, try to pay I off on the smallest card and you will see sooner the debt on the smaller card gets over in no time. The amount saved on the monthly payment for the smaller card can help you pay for the card with higher amount faster. Repetition of this process of snowballing the smallest amount on the credit card will help you pay the cards with the higher debt faster than before and bring you out of tit sooner than before.

Converting payments to EMIs

If you think that it is becoming difficult to repay your credit card debts, you can ask to convert your total debt amount into monthly EMIs. Banks generally charge you 2 – 3% of interest rate on monthly EMIs and in addition, charges 1 – 2% of processing fees for converting your total amount into monthly EMIs. By doing this your debt load can be  distributed on a monthly basis and you can plan accordingly to pay monthly EMIs, which could be a smaller amount than your total debt amount.

Opt for Automatic Payment Facility on your credit

It is recommended to use the auto-pay facility on your credit card to avoid missing the monthly payment on time. It is always kept in mind that the credit card comes with a late payment fee and a higher interest rate. The monthly bill will get deducted from your account automatically without any manual intervention and without any worries about missing the dates of payment of the monthly bill.

Track the bills periodically

Keeping a periodic track on the bills charged on your credit card can let you be aware of the miscellaneous charges levied by the bank on certain purchases. If you lose a track of it, suddenly one day it will come as a shock to see the bill of your credit card, which you did not follow through for long. There are numerous cases of fraudulent transactions by unreliable elements, which would have got hold of your credit card’s PIN and pushed you into a viscous cycle of debt without you knowing about it and consequently letting you pay extra money.

Credit cards are powerful financial tools when it is being utilized in a smart manner. By following the above mentioned strategies tips you can surely avoid the financial disaster coming your way with the reckless usage of a credit card.


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