Do you have a credit card bill hanging over your head but no clue about how to pay it off quickly? Don’t fret; we’re here to help. The fastest way to pay off your credit card bills depends on your total debt and credit terms.
However, there’s no one way to pay off your credit card bills. But you must stay focused on balancing your credit utilization ratio with the right techniques. In this blog, our team at Great Canadian Rebates has talked about the three most popular and effective credit card payment strategies.
So let’s get into the details right away.
1. The Avalanche Method
Using the avalanche method, you try paying off the debts with the highest interest rate. Following this payment, you continue making minimum payments until the bill is settled to zero.
Here’s an example: suppose you own three credit cards with APR 40, 26, and 20%, respectively. You’d want to pay off the bill with 40% interest first and then move on to the other two. This method helps in racking down snowballing interest charges.
2. Debt Consolidation
Credit cards often come with a higher APR than personal loans. Some people like to consolidate their personal loans and use them to pay off their credit cards. This technique plays really well for good credit score holders as they’re able to secure lower APR and flexible payment terms. It also allows you to make one payment each month.
3. Opt for a Balance Transfer Credit Card
Looking for a new credit card in Canada? Opt for a balance transfer credit card. It allows users to transfer their balance from their previous account with 0% or an extremely low APR. Such credit cards also eliminate interest charges if the user manages to pay off within the determined limit.
Balance transfer credit cards motivate heavy spenders to make quicker debt payments due to their attractive and rewarding introductory APR offers.
We also recommend credit card users choose a cashback or an shopping credit card to enjoy exclusive promotions and discounts. These credit cards reduce monthly expenses with their routine reward programs and help you pay off your bills more easily.
How Can Great Canadian Rebates Help You?
As a leading online credit card-finding platform, Great Canadian Rebates allows you to compare the best Canadian credit cards. Visit Great Canadian Rebates for more details.