How to Properly Use Credit Cards in Paying Off Debts?

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Indeed, you can use a credit card to pay off your debts. However, it can also result in adding more debt if not used responsibly. To avoid accruing more debt, it’s best to have a plan on how you will use your credit card and how to quickly pay off your debt.

Here are tips on how to properly use credit cards in paying off debts.

Transfer High-interest Debt

Use credit cards that offer balance transfer promotion with low to zero interest rate. Transfer as much debt as possible to reduce interest you need to pay.

Pay on Time

Pay your credit card debt on time. It’s better to set up an automatic payment to ensure the payment is made on time.

Pay as Much as Possible

Pay as much as possible to reduce the balance quickly. Pay more than the minimum or make several payments in a month to quickly pay off your debt.

Avoid Getting More Debts

Stop using your credit card for new purchases. If you cannot stop, just limit the use of credit cards. This way you avoid adding more to your existing balance.

Track the Money

Keep track of your payments and spending. Always review your credit card statement to make sure your payments are correctly applied.

Keep in mind that paying debts with your credit card is a short-term solution. It’s important that you address the reason why you are in debt in the first place. Develop good spending habits to avoid serious debt.

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