Ways to Pay Off Your Debt
There are a lot of options you can choose for you to be able to lower down the costs of your debt and take control on your finances. Here are ways on how to clear your debts faster.
• Change to a 0% balance transfer credit card. Why don't think about shifting your balance to 0% balance transfer deal, if you are paying interest on your credit card. The best deal currently offer is up to 28 months interest-free.
• Refuse increases in your credit card Annual Percentage Rate (APR). If your credit card company says they're going to increase your interest rate so you can use the credit card for more spending, you have 60 days to contact the company and refuse the increase. It is better to pay off your credit at a lower rate.
• Join with your local credit union. Credit unions offer cheaper loans than most of other providers and usually do not acquire, set-up fees and other administrative costs. By law, credit union charged not more than 2% a month for the interest.
• Refrain or stay away from payday loans and other forms that have high cost credit. Payday loans are expensive and can take advantage of the continuous payment in the event of a transaction not being verified. This kind of loan should only be used as your last resort.
• Before you apply for credit, improve your credit score by checking your credit report. You need to check for any mistakes on your file, because if you have a poor credit history, it will affect the chances of acceptance on your application for the loan and the interest rate that they will offer to you.
• Pay more than the minimum on your credit card. If you make the minimum payment only, it will take you years to repay your full balance and may also damage your credit score. On your credit report, it will record, whether you make the minimum payment or in a bigger amount. If your record shows that you can only pay for a minimum, potential lenders might think that you are having a hard time to balance your finances. Most likely lenders will lend you at a competitive rate if they will lend at all.
• Combine your debts with a personal loan. It is worth considering a better rate personal loan if you owe money on a credit card with a high interest rate. These often have a lower annual percentage rate and will give you assurance over the monthly repayment.
• Get an independent, free debt advice if you can't afford the repayments on your existing debts.
• Get an approved overdraft from your bank, if you exceed on your overdraft limit. If you go into unauthorized overdraft it will only cost you extra charges and can be more expensive than a payday loan.
• Pay off your debt first before saving. Rates available for savings account are lower than the average interest on a credit card. Better use your savings to settle your debts which can save you a year in interest charges.
If you are intented to sign up for debt relief services or debt settlement services, make sure the companies has a excellent BBB/Better Business Bureau rating.
• Change to a 0% balance transfer credit card. Why don't think about shifting your balance to 0% balance transfer deal, if you are paying interest on your credit card. The best deal currently offer is up to 28 months interest-free.
• Refuse increases in your credit card Annual Percentage Rate (APR). If your credit card company says they're going to increase your interest rate so you can use the credit card for more spending, you have 60 days to contact the company and refuse the increase. It is better to pay off your credit at a lower rate.
• Join with your local credit union. Credit unions offer cheaper loans than most of other providers and usually do not acquire, set-up fees and other administrative costs. By law, credit union charged not more than 2% a month for the interest.
• Refrain or stay away from payday loans and other forms that have high cost credit. Payday loans are expensive and can take advantage of the continuous payment in the event of a transaction not being verified. This kind of loan should only be used as your last resort.
• Before you apply for credit, improve your credit score by checking your credit report. You need to check for any mistakes on your file, because if you have a poor credit history, it will affect the chances of acceptance on your application for the loan and the interest rate that they will offer to you.
• Pay more than the minimum on your credit card. If you make the minimum payment only, it will take you years to repay your full balance and may also damage your credit score. On your credit report, it will record, whether you make the minimum payment or in a bigger amount. If your record shows that you can only pay for a minimum, potential lenders might think that you are having a hard time to balance your finances. Most likely lenders will lend you at a competitive rate if they will lend at all.
• Combine your debts with a personal loan. It is worth considering a better rate personal loan if you owe money on a credit card with a high interest rate. These often have a lower annual percentage rate and will give you assurance over the monthly repayment.
• Get an independent, free debt advice if you can't afford the repayments on your existing debts.
• Get an approved overdraft from your bank, if you exceed on your overdraft limit. If you go into unauthorized overdraft it will only cost you extra charges and can be more expensive than a payday loan.
• Pay off your debt first before saving. Rates available for savings account are lower than the average interest on a credit card. Better use your savings to settle your debts which can save you a year in interest charges.
If you are intented to sign up for debt relief services or debt settlement services, make sure the companies has a excellent BBB/Better Business Bureau rating.
Source...