Paying off your high-interest debt can be a difficult task. Knowing where to start, what steps to take next, and avoiding common mistakes can make the process much more manageable. Here are 15 tips to help you pay off high-interest debt quickly.
Tip #1: Negotiate Your Interest Rate
Many creditors are willing to negotiate a lower interest rate if you have paid on time for several months.
Tip #2: Balance Transfer Credit Card
If you have a good credit score, you might be able to transfer some or all of your credit card debt to a zero or low-interest card. With a 0% credit card, you will pay off credit card debt faster.
Tip #3: Pay More Than The Minimum Payment Every Month
If you only make the minimum monthly payment on your debts, it will take you a very long time to pay them off. If you only make the minimum payment each month, you will end up paying more in interest than you originally borrowed.
Tip #4: Cut Unnecessary Expenses
To pay off your credit card balances more quickly, you need to find ways to free up extra money each month. One way to do this is by cutting back on unnecessary expenses.
Pay off your smaller credit card debts first, and then work your way up to larger ones as you become debt-free. You'll end up paying less interest overall this way. It also makes it easier as you only need to keep track of the lowest of your credit card balances.