Effective ways to pay off your credit card debt faster

A good way to start is by viewing one’s credit report and credit score, both of which can be done for free. Check if it’s accurate and identify the accounts dragging your rating down.

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Explain to lenders steps taken to avoid defaults and ask to renegotiate the debt. The lenders will make concessions if they feel loose credit ways have been abandoned for good.

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Combine multiple old debts into a single new one, ideally at a lower interest rate, making payments more manageable or the payoff period shorter. There are a few ways to consolidate debt, including balance transfer cards (with a balance transfer fee) and personal loans.

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There are two ways to tackle debt. “Avalanche” and “snowball” methods. The first involves paying off debts with the highest interest rates first. The other is about tackling the lowest amount of debt first, pay it off, and then tackling the next loan.

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Automating payments is an easy way to make sure repayment strategy works and future debts are paid on time.

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1) As credit card balance is carried forward, the interest is computed on average daily balance. Making smaller payments frequently can reduce interest. Pay double the minimum amount to make a big impact towards debt reduction.
2) Consider borrowing money to pay off outstanding using a peer-to -peer lender service.

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