Fastest Way To Pay Off Credit Card Debt

If you are a person who often uses credit cards for daily needs so that debt becomes piled up, paying it off may be much easier than imagined. The key is to develop a good plan and continue to be consistent. But among all the desires, surely one day you have the desire to immediately pay all these debts. The question is what is the fastest way to pay off credit card debt?

As we know that balances on Americans' credit cards swelled to record levels when they turned to credit cards to cope with high inflation.

Illustrative image (Picture: debthunch.com)

A recent Bankrate survey showed that more than a third (35 percent) of U.S. adults now have credit card debt month-over-month, up from 29 percent a year ago. That credit card balance averaged $5,474 per borrower in the third quarter of 2022, according to TransUnion.

Fastest Way Pay Off Credit Card Debt

Credit cards are one of the easiest means of payment when we lack funds to buy goods. However, behind its convenience, many people also have difficulty paying credit card bills and end up in arrears.

How to pay off credit card debt fast?

To pay off credit card debt, there are several ways to pay off credit card debt that you can apply, namely:

1. Calculate the Amount of Monthly Income

The first way to pay off credit card debt quickly is to take into account the amount of monthly income. You can make a priority scale of financial allocation from monthly income, how much is used to pay bills, installments, and daily expenses.

The ideal allocation of daily expenses, debt, and savings is 50%/30%/20%. However, if it is not possible to use this ideal calculation, you can reduce the amount of savings to 5% to 10%.

2. Pay Credit Card Debt Once You've Got Your Paycheck

The next quick way to pay off credit card debt is to pay bills right after getting a paycheck.

For the salary at the beginning of the month to be allocated properly, you should make credit payments as soon as possible after getting a salary. Thus, you can immediately release the burden of paying bills without waiting for financial conditions to run low.

Even if possible, pay off credit card debt over the amount billed should be. Thus, you can live more calmly if one day there is a sudden expense that has to cut the credit payment ratio.

3. Prioritize Debt Based on Due Date

Discipline to pay credit card bills on time is a way to pay off credit card debt quickly. Paying off bills before they are due will make you avoid penalty fees such as late penalties.

If you delay the payment of credit card debt, the burden of installment fees in the next month will swell. Because credit card interest is inflated, as a result, the interest bill in the next month doubles.

4. Side Work to Increase Income

If how to pay off credit card debt quickly has been tried but credit card debt is still not resolved, maybe you can find additional income. For those of you who have time after work, you can find a side job.

Side jobs such as freelancing are one way to pay off credit card debt that accumulates. With the additional income, the settlement of credit card arrears can be done faster.

In this day and age, finding a side job is very easy and can even be a hobby. You can be a designer, writer, social media influencer, product reseller, and so on.

5. Stop Using Credit Cards until Bills Are Paid Off

Temporarily stopping the use of credit cards until the previous bill is paid off is one way to pay off credit card debt that accumulates.

During the gap period of not using this credit card, you can use it to pay off previous credit card bills, so that debt does not accumulate. As long as you stop using credit cards, you can rearrange your credit card usage plan so that debt does not accumulate.

That's a little information and the fastest way to pay off credit card debt. Hope it is useful.

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