Credit Cards

Tips for Paying off all of your Credit Cards

Bobby Coles's image for:
"Tips for Paying off all of your Credit Cards"
Image by: 

Figuring out the best method to pay off multiple credit cards can help you to save scads of cash over a certain time period. A large percentage of the population is saddled with thousands of dollars in credit card debt, and are being swallowed into a pit of debt that seems nearly impossible to climb out of on their own.

Paying off these multiple credit card balances can take a long time, but there are ways that you can go about making these payments that will benefit you.

The best way to pay off multiple credit card debts is to consolidate them, which can be done either through a debt consolidation firm, acquiring a balance transfer credit card, or by applying for a personal loan. These options can all help you, as they come with much lower interest rates than the ludicrously high interest rates attached to your existing credit cards. Debt consolidation firms are springing up all over the place, as more and more people are seeking assistance making their payments.

Debt consolidation involves having someone act on your behalf, trying to secure you much better interest rates, so that you can manage your finances in a much more convenient and affordable manner. Going to a debt consolidation firm is an effective way to pay off multiple credit cards, and can get you back on track rather quickly, provided you take all of their help and advice, and put it good use.

With all of your debt piled into one lump sum, you can keep tabs on your debt, and you will always know when the bill is due, and how much it will be. This takes a lot of the guess work out of carrying multiple credit card debts, all with different interest rates, balances owing, and due dates. This same philosophy is applied with balance transfer credit cards.

Balance transfer credit cards carry with them some hidden risks, but if you learn everything that there is to know about credit cards, and do not make any of the common mistakes that people tend to make with their credit cards, then you should be able to pay off your debts in a sufficient time-frame.

Shopping around for the best balance transfer credit cards may take a little bit of leg work and time, but the end results will show in your debt reduction. Many balance transfer cards carry interest rates as low as 0%, and often do not go any higher than 5%. This is a great deal lower than the 9% bank loan, or the 18-27% interest rate on many credit cards and retail store cards.

With your interest rates being dramatically lowered, you will find yourself much more able to meet the payments required, and the accrued interest the following month will not be nearly as pummelling to your finances as the previous bills. Balance transfer credit cards do carry low interest rates only for a limited time, so you have to be prepared to make the necessary adjustments to your financial situation once this card raises its rate and leaves you mired in the lurch. This may be why a personal loan is your most viable option.

Taking out a personal loan is the best way to pay off multiple credit card debts. A personal loan can be handled by your primary financial institution, and they can help you to figure out how much you can afford to pay, and what the best method is for you to reduce your debt.

A loan leaves you with one balance owing, and the interest rates are much friendlier than the major credit card companies and retail conglomerates. Once you set up a loan, have the money withdrawn automatically each month, or twice a month (on pay days, whenever they occur for you), and notice how much more quickly your debt begins to decrease.

Forgiveness is not often associated with major credit card companies, but if you were to contact them and see if they would be willing to lower your interest rates, you may be surprised by the answer. The credit card companies want your money, and they also want to keep you as a valued customer for the duration of your spending days, so they will most likely work with you in order to help you make payments. The aforementioned options are all much better, but depending on your situation, this one could help you out a great deal.

Once you have paid off all of your credit card debts from your multiple accounts, leave the cards active, but put them away, or cut them up. Do not close the accounts, since they will now be helping your credit score rather than hindering it like when you were swamped with debt.

Try and figure out in the interim how to better budget your money so that you do not find yourself back in this predicament in the future.

More about this author: Bobby Coles

From Around the Web