How to pay off credit card debt
Posted: Tue Feb 18, 2025 9:52 am
Studying the terms of the contract and the basics of financial literacy will help you. The most common mistake is making only the minimum payment and skipping the interest-free period.
In the first case, the bank client pays the minimum over and over again. The amount is only enough to pay off the accrued interest and a small portion of the principal debt. The latter is practically not reduced. Interest continues to accrue on its amount, which forms a significant overpayment.
How to close a credit card with a large debt - rule #1: pay as much money as possible, not just the required payment amount. In this case, the amount of the principal debt will decrease, and therefore the interest accrued on it.
In the case of missing the interest-free period, everything is clear: the client did not return the money on time, so the bank began to charge interest. Borrowers often make this mistake because they do not armenia mobile database know how to correctly calculate the terms. It is worth rereading the terms of the agreement and acting in accordance with its provisions.
How to close a credit card without overpaying – rule #2: learn how to correctly calculate the grace period. The bank’s support service can help you with this. The end date of the interest-free period is also often noted in the mobile app.
Refinancing Credit Card Debt
If there is already a debt on the credit card and the bank charges high interest on the remaining debt, then its prompt repayment becomes a priority. The faster you return the money, the less you overpay. Therefore, it is worth considering the possibility of refinancing. Usually, the rates on credit cards are significantly higher than on regular consumer loans. But the amounts are relatively small.
What you can do:
Take out a loan within the framework of “classic” refinancing.
Apply for a credit card with more favorable terms and free transfers.
In the first case, the bank client pays the minimum over and over again. The amount is only enough to pay off the accrued interest and a small portion of the principal debt. The latter is practically not reduced. Interest continues to accrue on its amount, which forms a significant overpayment.
How to close a credit card with a large debt - rule #1: pay as much money as possible, not just the required payment amount. In this case, the amount of the principal debt will decrease, and therefore the interest accrued on it.
In the case of missing the interest-free period, everything is clear: the client did not return the money on time, so the bank began to charge interest. Borrowers often make this mistake because they do not armenia mobile database know how to correctly calculate the terms. It is worth rereading the terms of the agreement and acting in accordance with its provisions.
How to close a credit card without overpaying – rule #2: learn how to correctly calculate the grace period. The bank’s support service can help you with this. The end date of the interest-free period is also often noted in the mobile app.
Refinancing Credit Card Debt
If there is already a debt on the credit card and the bank charges high interest on the remaining debt, then its prompt repayment becomes a priority. The faster you return the money, the less you overpay. Therefore, it is worth considering the possibility of refinancing. Usually, the rates on credit cards are significantly higher than on regular consumer loans. But the amounts are relatively small.
What you can do:
Take out a loan within the framework of “classic” refinancing.
Apply for a credit card with more favorable terms and free transfers.