Getting out of credit card debt might be difficult, but it is doable. Many Canadians are burdened by credit card debt. With the growing interest and inflation rates, balances are projected to climb more and become more expensive.
Despite what solicitors or infomercials may tell you, there is no instant fix that gets you out of debt. However, a mix of carefully thought-out money decisions can help you lower your debt, reduce your credit card APR, and allow you to be on the path to debt-free living.
Here’s a complete guide on paying credit card bills all at once.
Paying Credit Card in One Go
1. The Avalanche Method
Make an Excel sheet of your debts in order of top interest rate to the minimum interest rate if you want to get out of debt fast. Make the monthly payment individually, but direct all your surplus funds to the obligation with the greatest interest rate. It is frequently called the “avalanche” technique of debt payback.
Compared to other tactics, this approach is ideal and saves a lot because you will have paid the least interest.
2. The Snowball Method
The snowball strategy involves paying off your obligations from least to greatest. Reaching a debt-free zone is a fantastic motivation for individuals to stay on this path.
Like in the avalanche strategy, you should make the minimum monthly payment on separate loans before going in on the chosen one for the month. When you’ve paid it off completely, you apply the funds you devoted to it to the second greatest obligation on your debt-free list.
3. Consider A Balance Transfer Credit Card
If, despite your debt, you have decent credit — achievable if you’ve been paying your minimum monthly payments timely and maintaining a low credit usage ratio. With a balance transfer credit card, you can qualify for a 0% intro APR balance transfer offer.
This introductory zero-interest offer might run somewhere between 12 to 21 months and will allow you to move existing interest balances that are significantly higher to the new card. You’ll save money on interest throughout the 0% term, making it simpler and quicker to become debt free.
4. Control Your Spending
Unforeseen health or emergency costs might cause someone to incur credit card debt. In other instances, persistent overspending is the cause of debt, which implies you’re expending more than you’re saving or have in your current accounts. If you wish to understand how much you’re spending, it is best to create a fair budget.
5. Expand Your Backup Account
Overusing credit cards is an easy trap if you don’t have considerable savings – especially if borrowing from your loved ones or minimizing your spending isn’t an option.
For consumers who are in debt and whose income is insufficient, it is difficult to try and increase your savings. They either need to lower their spending or grow their income. Ideally, they should try doing both.
6. Shift to Cash Payments
When you start paying for all your expenses with cash, it keeps you from collecting additional debt. It will allow you to spend to a lesser extent since the psychological process of giving over tangible banknotes helps you spend less. It also necessitates planning ahead of time and makes some consumptions difficult, making them less likely to be made.
7. Debt Consolidation
It can effectively consolidate many high-interest credit card debt lines into a single loan with a set regular payment. It is best to can combine your debts by starting a balance transfer. However, you might also explore obtaining a debt consolidation or home equity loan.
Final Verdict
In conclusion, paying credit card bills on time is important. There are seven ways to pay off your card all at once, and you choose one depending on your ability to repay debt. At Great Canadian Rebates, we provide our customers with exclusive promotions from various retailers. Approach us to learn all about paying credit cards.