A debt free financial life is the dream for everyone, not only in Canada but in all parts of the world. You feel good when you know there is no one waiting on you to pay back their money that you may have borrowed some time back. Yet this is a difficult position to attain in today’s challenging life. In fact, most Canadians cruise along life paying off several credit card debts either through automatic deductions or by putting aside the same amount of money at the end of every month, all destined for paying off debts.
The faster you can pay off your credit card debt the better because it accelerates your journey towards a debt free life which is one of the best moments you can have and the earlier you can have it the better.
Here are some things you can do to pay off your credit card debt faster:
Monitor your interest rates
Interest rates are among the most crucial things you should always keep your eyes on for as long as you are still paying off your credit card debt. The unique thing about interest rates is that they are often unpredictable and can change any time depending on the current economic status of the country. Whenever the interest rates go up, it will most likely affect the monthly amount of money that you pay to your credit card institution. So what can you do when you realize that the interest rates have gone up? You can request a lower interest rate, opt to increase your monthly payments by paying more money, or negotiate with your bank to extend your payment period. Adding more money to your monthly payments will dilute the effect of increased interest rates while extending your repayment period will keep your monthly payments unchanged.
Make the most of your extra cash
Let’s be honest. There are times of the month when you get some extra cash on top of your regular income. This could be bonuses at work or cash gifts from friends. Often, this is cash you had not planned for, meaning it is equally prone to unplanned spending. Instead of just spending the extra money on items that can wait or are completely unnecessary, you can direct the cash to your credit card debt repayment program. It doesn’t mater how small the extra cash might be, it could be $10 or $20, maybe more maybe less. But that $10 can help you pay off your credit card debt that much faster and get out of debt early enough to concentrate on other important things. You can make it a personal rule that all the extra cash you get must be directed to repaying your credit card debt.
Consolidate your debts
There are a variety of debt relief options available, and it’s helpful to understand each to figure out which one would be the most helpful in your current situation. The easiest to understand is debt consolidation. Consolidation entails bundling all your current debts together in such a way that they become one debt. The advantage of debt consolidation lies in its ability to help you get all your debts organized, so you’d only pay one monthly debt instead of multiple debts. Usually, your monthly payment will be lowered as well.