Tips for paying down debt
A credit card debt is like a ship that never sails if you pay what you owe every month. But if you end up having to pay high interest debt on your credit cards, you better have a good plan to pay them down.
Do not forget to save
The only reason your debt exists is because you did not save enough to begin with. If you save enough money every month, and do not spend more than you have, then you will always be able to pay down the debt on the credit card each month, and you will never have interest running on the credit card debt. So always save some money for emergencies or big unexpected costs.
Live cheap and pay as much as you can
You should try pay as much as you can manage as early as possible so that the interest does not go too high. To do this you can try to live cheap for the down payment period. Make it fun by giving yourself challenges to save money, like no-shopping periods. But…
Do not pay more than you can manage
If you pay more than you can manage you will just get new problems with new debt. A situation where you end up paying too much every time you receive your wage, and then taking up new loans by the end of the month, is a situation that easily leaves you at a worse place than where you began.
Talk with your bank
Many people who are in debt are afraid to talk with their bank about their repayment problems. This is a big mistake. The bank will be interested in helping you paying down debt, and they have a lot of experience that they can share with you to help you repay. They can offer you repayment deals, give you extra time to repay or freeze the interest. But this will never happen if you don’t talk to the bank. Try to solve the problem instead of hiding it under the carpet.
What if I can not even pay back the interest?
Contact the bank for help with seeing a debt counselor.
Despite detailed research we can not guarantee the accuracy or completeness of the information provided.