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So,
you've had your credit card for a while. You've used it,
possibly even too much. Now it is time to start paying it
off. Unfortunately, the joy you probably experienced while
you were charging up a storm is about to turn into dread.
Paying off a credit card is a whole lot harder than charging
one. There are some options that you have, as well as some
tips to make the whole ugly process go a little smoother.
How To Pay Off A Balance
Of the people who carry a credit card, about one-third of
them do not pay off their balance each month. If you're one
of these people, you may have noticed that even though you
pay the minimum payment due each month, the balance either
never changes or even continues to grow.
Just why does this happen, you may ask? Well, let me let you
in on a little secret the credit card companies hope it will
take you a long time to figure out. The amount of your
minimum payment is usually equal to the interest only that
is due on your balance. It may even be less. So, even if
you're paying your minimum amount on time each month, none
of that payment is actually going to the principal. At this
rate, you'll never pay off your card. So, let's go over a
couple of tips that may help you put a dent in your balance.
First, quit using your card. If you need to make some
changes in your lifestyle, then do it. Unless it is truly an
emergency, don't use your card for anything. Charges will
only keep the vicious cycle going.
Pay more than the minimum payment due. For reasons stated
above, this is critical to eliminating credit card debt. If
you can, transfer your card to a card that has a lower
interest rate. These applications come in the mail all the
time. Just remember, this new card isn't for charging. It's
to be used as a tool to pay the balance off.
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Credit Card Information
»Credit Card
Information
»Types
of Credit Cards I
»Types
of Credit Cards II
»Various
Features
»APR
Explained
»Choosing
a Credit Card
»Credit History
»What
is a Credit Report
»Credit
Card Numbers
»Expiration
Date
»Application
Process
What to do When...
»Your
Credit Card is Stolen
»Your
Application was rejected
»You
Have no Credit History
»You have Credit
Card Debt
»You have to pay your bill
Business Owners Section
»How
Credit Cards are Processed
»Accepting
payments online
»Accepting
payments offline
»Protecting
Your Business From Fraud |
