{"id":8874,"date":"2024-12-02T09:58:44","date_gmt":"2024-12-02T09:58:44","guid":{"rendered":"https:\/\/finderica.com\/how-to-pay-off-credit-cards-faster-11-mostly-painless-options\/"},"modified":"2024-12-02T09:58:44","modified_gmt":"2024-12-02T09:58:44","slug":"how-to-pay-off-credit-cards-faster-11-mostly-painless-options","status":"publish","type":"post","link":"https:\/\/finderica.com\/?p=8874","title":{"rendered":"How to Pay Off Credit Cards Faster: 11 (Mostly Painless) Options"},"content":{"rendered":"\n
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\"ScoreCard<\/p>\n

The average American owes $6,501 in credit card debt, according to Experian<\/a>.<\/p>\n

Plug that figure into a debt repayment calculator<\/a> and you\u2019ll see with the average 23.75% interest and 2% minimum payments, it\u2019ll take about 13 years to pay it off.<\/p>\n

Total payments will be $13,972 \u2014 more than double the original balance.<\/p>\n

You probably don\u2019t want to have debt like that hanging around for 13 years. You might also want to avoid paying twice as much for everything you buy.<\/p>\n

You\u2019ll save a lot of money if you pay off credit cards faster.<\/p>\n

That\u2019s the focus of this guide from The SS: how to<\/em> pay off credit cards faster. If you\u2019re looking to pay off bigger debt, see our overall guide on how to pay off credit card debt.<\/p>\n

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7 Ways to Make Money if You Hate People<\/h3>\n

Do you avoid people too? In the past, there was almost no way around working with people if you wanted to earn a living, but things have changed.<\/p>\n

Our team has compiled a list of creative ways<\/a> you can fatten your bank account this month, without having to put up with people.<\/p>\n

Enough small talk. Here are some ways<\/a> to earn extra cash, without all of the social stuff.<\/p>\n<\/div>\n<\/div>\n

11 Strategies to Pay Off Credit Cards Faster<\/h2>\n

We could fill this page with reasons to pay down consumer debt more quickly. But whatever your<\/i> reasons are, here are 11 ways to pay off credit card debt fast.<\/p>\n

1. Stop Using Your Cards!<\/h3>\n

This is an obvious one, but also not a universal suggestion.<\/p>\n

If you normally have trouble with impulse buying on credit, put the cards away.<\/p>\n

But if your current debt situation is a result of unexpected events and you normally handle credit cards responsibly, there are advantages to continuing to use credit cards. We\u2019ll get to it in the next item on the list.<\/p>\n

Also, closing credit card accounts can hurt your credit score<\/a>. This is especially true if those accounts are older and\/or have high credit limits.<\/p>\n

So you may want to keep most accounts open, but just hide the cards.<\/p>\n

2. See if You Can Cut Your Credit Card Interest Rate by 70%<\/h3>\n

Every month, you make payments toward your credit card debt. But you never seem to make a dent. It\u2019s because of those sky-high interest rates \u2014 as much as 24% interest. It can feel impossible to get ahead.<\/p>\n

But MoneyLion<\/strong><\/a> could help you find offers to cut your interest rate by 70% as soon as tomorrow.<\/p>\n

Here\u2019s how it works: MoneyLion can match you with new loan offers at a lower interest rate \u2014 as low as 5.20% APR*. That\u2019s 70%* lower than the average credit card interest rate. And it\u2019s the key to finally getting ahead.<\/p>\n

You can use this new loan to pay off all your existing credit card debt, leaving you with one (cheaper) monthly payment that will help you get out of debt faster.<\/p>\n

If you have a credit score of at least 620, you could get up to $100,000. With no collateral. And terms go up to 144 months.<\/p>\n

Worried you won\u2019t qualify? Take two minutes to check online and see if you could cut your credit card interest rate by 70%<\/strong><\/a>.<\/p>\n

*Based on creditworthiness. Average credit card interest rate is 24.72% as of 8\/14\/24, according to Forbes Advisor\u2019s weekly credit card rates report.<\/em><\/p>\n

3. Use a Credit Card With No Balance for Normal Purchases<\/h3>\n

When you use a card with a balance, you pay interest on purchases from the day you make them.<\/p>\n

But if you put normal purchases on a card you pay in full every month (what I call a PIF card), you avoid new interest charges. Apply those savings to paying down the debt.<\/p>\n

If you don\u2019t have a paid-up card, pay off one of your cards first, then make it your new PIF card.<\/p>\n

In theory \u2014 if you can handle it \u2014\u00a0using a cash-back credit card<\/a> can be better than paying cash. Use the cash rewards to help pay down your debt.<\/p>\n

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4. Budget More for Debt Repayment<\/h3>\n

Budget as much as you can<\/i> toward debt repayment so you can pay off credit cards faster.<\/p>\n

Put money normally allocated to an emergency fund toward debt repayment.<\/p>\n

What if you have an emergency? See my list of 101 ways to raise cash in a week, or use the credit cards you\u2019ve kept. You\u2019ll at least have reduced the interest charges up to that point.<\/p>\n

5. Cut Expenses and Allocate More to Debt Repayment<\/h3>\n

One of the most powerful strategies you can use is to cut your expenses \u2014 then apply the savings toward debt repayment.<\/p>\n

For inspiration, take a look at how one family cut their expenses by over $1,000 per month.<\/p>\n

Imagine how quickly you could knock down debt if you had an extra $12,000 per year to throw at it.<\/p>\n

6. Make Extra Payments Using New Money<\/h3>\n

Cutting expenses can only go so far \u2014 why not find new money to pay your credits cards faster?<\/p>\n

Working an extra day on overtime every other week could bring in thousands of dollars annually. For more ideas, see my list of ways to make more money from your job, or try some of these ways to make money at home.<\/p>\n

In general, any unexpected or \u201cextra\u201d income should go toward your debt \u2014 including tax refunds or monetary gifts.<\/p>\n

Then, sell everything you don\u2019t use on Craigslist or have a garage sale. Use the money you raise to pay down those balances.<\/p>\n

7. Ask for Lower Interest Rates<\/h3>\n

You can convince credit card companies to lower your interest rates \u2014 if you ask the right way<\/a>.<\/p>\n

It\u2019s worth trying at least once for each credit card you have.<\/p>\n

Knocking four interest percentage points off a $10,000 balance can save you hundreds of dollars in interest annually. Add those savings to your debt repayment budget!<\/p>\n

8. Pay the Highest-Interest Debts First<\/h3>\n

Pay only the minimum required on every card, except the one with the highest interest rate.<\/p>\n

If you put most of your debt repayment budget toward the balance with the highest interest rate, you\u2019ll pay it off quickly. Then, do the same with whichever remaining card balance has the highest interest rate.<\/p>\n

This formula helps you devote less money to interest and more to paying down the debt\u00a0\u2014 speeding up the process.<\/p>\n

One exception is if all<\/i> your cards have balances. In this case, you might want to pay off the smallest balance in order to have one card to use for normal purchases. Pay this card in full every month to avoid any new interest charges.<\/p>\n

9. Make Two Payments per Month<\/h3>\n

Most credit card companies use an average daily balance<\/a> to compute interest charges.<\/p>\n

Instead of paying $400 toward a balance each month, make two payments of $200. You\u2019ll lower the average daily balance \u2014 so you\u2019ll pay less interest!<\/p>\n

In theory, paying every week would help even more, but may be too cumbersome.<\/p>\n

10. Transfer Debt to Zero-Interest Cards<\/h3>\n

Transferring some \u2014 or all \u2014 of your debt to a card with a lower interest rate can make repayment much easier.<\/p>\n

This is especially true if you find a card with no transfer fee and no interest for a year or more. One couple paid off a $2,000 credit card debt using a balance transfer.<\/p>\n

If you can, pay off the entire balance during the zero-interest period. If you can\u2019t, watch for other zero-interest offers when the current one is almost over.<\/p>\n

11. Get the Debt Reduced<\/h3>\n

Sometimes, you can convince a credit card company to forgive your debt<\/a> \u2014 or at least part of it.<\/p>\n

If you\u2019re in serious financial trouble, explain the situation to the card issuer. Offer to pay a portion of the balance owed as payment in full.<\/p>\n

Get the agreement in writing \u2014 if the debt is simply written off as uncollectible (not paid-in-full), it can still be sold and collected later.<\/p>\n

Beware: Forgiven debt can be taxable as income<\/a>.<\/p>\n

In other words, if the credit card company agrees to take $2,000 as full payment on a $7,000 balance, you might<\/i> have to pay taxes on the forgiven $5,000.<\/p>\n

Putting It All Together to Pay Off Credit Cards Faster<\/h2>\n

Any one of these strategies might be useful on its own, but use several to pay off your credit cards faster.<\/p>\n

For example: Get lower interest rates, make two monthly payments, pay the highest-interest-rate balances first and allocate all new money and savings from reduced expenses toward debt repayment.<\/p>\n

How quickly can you accomplish your goal of paying off your credit card debt? It depends on your situation, debt level, and commitment.<\/p>\n

Lauren Bowling used several of these strategies as part of her \u201caggressive approach.\u201d She paid off $8,100 of credit card debt in three months.<\/p>\n

Credit Card Debt Repayment Action Plan<\/strong><\/h2>\n

Step 1: Evaluate Your Debt<\/strong><\/h3>\n