Credit card debts can be crippling. But, it’s something that many of us are facing. In fact, the average household has around £8000 of credit debt, in the form of credit cards, store cards and overdrafts. Including mortgages, per adult in the UK the average debt is just over £30000, which is 113% of the average income. These figures just so how much people are struggling. With the cost of living rising, and utilities and fuel costs going up all of the time, many of us are finding that most of our income is spent paying off debt.
Paying off huge debts can mean that once your bills are paid, there is nothing left, and it can be very easy to find yourself in trouble. The best thing to do is find ways to cut those credit card costs, freeing up cash for luxuries, treats and savings.
If you’ve got more than one credit card, you can find yourself paying huge amounts of interest, and it can feel like no matter how much you manage to pay off, your debts never get any smaller. The best thing to do is take a loan like those from Personalloan.co to consolidate your debts. This way, you are only paying one repayment and one lot of interest.
You are also paying the same amount each month. Paying the minimum on credit cards means that your repayments slowly go down, but it also means that the average debt takes around 37 years to pay off completely. Paying the same amount each month on a loan means that the same debt could be paid in five years.
Transfer Your Balance
If you’ve got a good income, you could be able to take out an interest-free balance transfer card. This allows you to transfer the balance of your credit card (or as much of it as the limit allows) to a new card, which will then be interest-free for a set amount of time.
This is a fantastic short-term option, as it gives you a great chance to pay off your balance without having to worry about interest. But, check the details before committing. If the card is only interest-free for a year, how likely are you to have paid the debt off in that time? If there is any left, you may be facing much higher interest rates than you currently pay.
Improve Your Credit Score
While improving your credit score won’t directly decrease your debts, it will. Help you to secure the best deals on loans, savings accounts and card transfers. When we are struggling with debts, it can be easy to miss payments and find yourself with a negative score. Take some time to build it back up. Read this guide for help.
Earning a little extra cash can be a brilliant option. Whatever you make is bonus cash, pay all of it off your credit cards as soon as you’ve got it. Whether you’ve got a few spare minutes or lots of free time, there are plenty of easy ways to make money online.