4 Strategies To Pay Off Credit Card Debt in 2024

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4 Strategies To Pay Off Credit Card Debt in 2024

By lowering credit card debt in 2024, borrowers will put more money back into their pockets

Frank Conway

If you carry credit card balances month to month, it can be misleading to assume their convenience outweighs the cost. Or it could be tempting during the inflation crisis to defer paying off the balance in full. But did you know that paying off a persistent credit card debt might be faster and easier than you think. The key is developing a plan and sticking to it. The following four strategies can help you decide which course to take in order to quickly pay off any credit card debt.

  1. Target one debt at a time

Do you carry a balance on more than one credit card? If so, make sure you always pay at least the minimum on each card. Then focus on paying down the total balance on one card at a time. You can choose which card you target in one of two ways:

Focus on high-interest debt

Check the interest rate section of your statements to see which credit card charges the highest interest rate, and concentrate on paying off that debt first. This is sometimes called the avalanche method.


Try the snowball method

With the snowball method, you pay off the card with the smallest balance first. Once you’ve repaid the balance in full, you take the money you were paying for that debt and use it to help pay down the next smallest balance.

2. Pay more than the minimum

Look at your credit card statement. If you pay the minimum balance on your credit card, it takes you much longer to pay your bill in full. If you pay more than the minimum, you’ll pay less in interest overall.

3. Consolidate debt

Consolidating your debt lets you combine several higher-interest balances into one with a lower rate, so you can pay down your debt faster without increasing payment amounts. Here are two common ways to consolidate debt:

  • Transfer balances

Take advantage of a low balance transfer rate to move debt off high-interest cards. Make sure you check the full terms and conditions on where you plan to transfer your balances to. For example, make sure there are no transfer costs, or that the rate of interest you’ll be paying in the future are favourable.

  • Convert to a term loan

A term loan means that the time to repay it is fixed. This could be 12 months, 24 months and much longer. A term loan will almost always cost far less than a credit card charges. But if you are looking at this option, make sure you fully understand the total cost of interest you’ll end up paying but as a general rule of thumb, this can reduce the total cost of interest you’ll end up paying than if you kept up with the minimum payment option on your credit cards.

4.Review your spending

Start by categorising your monthly spending, for example: weekly food shopping, transportation, housing and entertainment. Your credit card statement can be a helpful tool. Look for areas where you can cut back. Then take the money you’ve freed up and apply it to paying down your debt.

  • Pay with cash

One way to manage your overall debt is to consider purchasing things with cash. Using cash or a debit card can help you avoid overspending or making impulse purchases—plus you eliminate any extra fees that may apply when paying with a credit card.

  • Use financial windfalls

If from time-to-time you receive extra cash, use it to boost repaying debt. A lump sum payment against an outstanding credit card debt can work wonders at reducing the overall cost of how much interest you end up paying, which ultimately means more money in your pocket.

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