If you have one or more credit cards and you have an outstanding balance, then you may feel that you would like to repay them. It is great to want to do this and having motivation is the first step that you need. However, that may not be enough and so hopefully the tops below will help you to be able to find a way forward in repaying the cards.
Find out What you Owe and Plan
To start with you need to organise yourself. Find out how much you owe on each card. Then think about which you want to repay first. It can be wise to repay the one with the highest interest rate first but you may prefer to repay the biggest one or the smallest one first. Consider which approach will help you to stay the most motivated as this is really important. You may find that knowing you can pay a few off completely will give you a good feeling so will want to start with the little ones or you may rather tackle the biggest as that worries you the most or go with the most expensive to save the biggest amount of money.
Stop Using the Cards
You will need to stop using your credit cards if you can. It can be very difficult to repay a card if the balance keeps going up and so you need to make it easier for yourself by not increasing it. They may be the odd circumstance where you feel you have no choice but to use a card, but try to keep that to a minimum and keep them out of reach, away from temptation if you can.
Make sure that you have direct debits set up for each one to repay the minimum. Think about whether you feel you can afford to repay a bit more than this and if you can, pay extra off the card that you want to repay first. Even if it is just a tenner extra it is a start and so change the direct debit so that it is a bit higher than the minimum. You should be able to arrange that with your lender by calling their customer services department.
Find Ways to Repay Extra
It is also a good idea to try to think of ways that you can get lump sums of money to repay chunks off the credit card. This will speed up how quickly they are repaid and there are things that you can try which could help you to be able to do this.
- Consider using any savings you might have
- Compare prices so you do not pay more than necessary for things you are buying
- Cut back on non-essential spending
- Sell things you do not need
- Work more hours in your job
- Find some temporary or freelance work
- Monetise your hobby
- Take on an additional part time job
None of these options are easy, but if you are really determined to repay your credit cards then it will be necessary to make some changes. You will have to decide what changes you can make most easily and that will fit in with your situation. The more you do, the quicker you will be able to repay the cards but you need to be reasonable as well and not put too much pressure on yourself as you could burn out if you take on too much work. It is also worth remembering that as you start to repay some of what you owe, the interest you are charged will go down and you will be able to use the money that you would have used for interest, to repay some of the balance.