Credit cards: small plastic rectangles carried in wallets and purses, allowing carriers to purchase a slew of items without having to pull out cash. Indeed the credit card, in the 21st century, has replaced the written check as the most popular method of payment for consumer products and services. Back in the 1970s, 80s and even 90s, applying for a credit card involved a great deal of checking and cross checking by banks and card companies. These companies would check an applicant’s work history, credit rating and other personal information prior to giving their blessing. Once approved, card holders would soon begin their credit card shopping. Unlike those draconian days of issuance, these days pretty much anyone who has an income is able to get a credit card. Unfortunately many card users tend to forget that using one of these plastic cards can, if used unwisely, lead to debt. Let’s imagine, for the sake of argument, that you have a large credit card debt that you want to pay-off as quickly as possible; what methods would you employ to get this “elephant” off your back? Let’s discuss some speedy common sense ways of clearing a credit card debt.

credit card debt

Obviously, using the card for the purchase of useful or necessary items is important; don’t waste your money on frippery. If you insist on buying something that may be perceived as a waste of money – use cash. Whenever possible, make your card payments quickly; don’t let the debt accumulate until it is in the thousands. Ideally pay off credit card debts with your first paycheck after the purchase. In the event you have a debt that has reached a substantial amount, it is a good idea to payback more than is required each month. If, for example, the minimum repayment is $50.00 per month, consider repaying $100.00 or more. Remember the longer it takes to clear your debt the more interest you will be paying. Credit card companies will not push you to repay more than is required because they make money from the interest you owe.

You might also give some thought to asking family members or friends, for a loan in order to clear your credit card debt. Obviously, if your debt is thousands of dollars, asking your brother, sister or parents for a loan may tax their finances. However, if the debt is in the hundreds, perhaps he or she wouldn’t mind helping you out. If, you are able to procure a loan from a family member or friend; it is a good idea to give him or her, your credit card for safe keeping – remove temptation. This will also show that you are serious about controlling your spending and are truly grateful for their help. In a situation where your credit card debt is extremely high and repaying it quickly is definitely not possible; visit your local bank and ask advice on what viable options are available to clear your card debt. You may find that your bank manager is able to recommend a slew of ideas that, if accepted, will allow you to free yourself of stifling credit card debt.

You may ask why clearing all debts quickly is so important. The best way to answer this question is to tell you that having your debts cleared quickly will actually save you money. This may sound like an oxymoron, however the longer you take to repay any kind of financial debt, the more interest you’ll have to pay. As mentioned above, credit card companies are more than happy to have you to make your repayments over the course of a few months or years. Paying off debts quickly also gives you an excellent credit rating, in the event you want to borrow money at some future date – think of that house you want to buy someday. No one really likes having money problems and owing money for an extended time does add to stress. Paying bills, loans and credit cards, promptly does have a positive affect on a person’s life. If you are out of debt you’ll feel better about yourself and thus a better person. Indeed paying loans quickly is the best policy.

You can also check out money saving tips like how to save money on one income, how to reduce household expenses, or how to make a monthly budget.

If you are a credit card user and you use the card to pay for all your purchases, give some thought to how you use the card. It is important to be frugal as well as smart. If you refrain from buying items that could be glassed as ‘keeping up with the Joneses’ or will, after a short period of time, will lose their magnetism you’ll be able to save and be debt free.

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