"What is the quickest way to clear my credit card debt?”
Everyday, people call the Debt Advice Trust asking for answers on a wide range of debt issues. The festive season may be over for another year, but how long are you going to be paying it off? If you put most of your Christmas expenses on credit, you'll probably be asking:
“What is the quickest way to clear my credit card debt?”
It only takes a second to run up debt on your credit card - but can take years to pay it off. This is a fairly simple question, with a fairly simple answer - although it can be hard in practice to clear debt:
Don't increase your credit card debt by continuing to spend! Cut up your cards if need be. Make it your New Years challenge to live within your means without taking out a new credit card or spending on ones you already have.
Make paying it off your priority! Consider if you can cut back somewhere on your expenses and use that money directly to pay it off, for example if you buy a magazine once a week, give it up for six months and read online magazines or borrow them from friends or the library. That extra few pound a week can make a big difference when you multiply it over a year.
Should you Consolidate? If you have high interest credit cards and short term loans, you could think about consolidating them with one debt consolidation loan. How does it work? You find a loan with smaller interest and smaller monthly repayments and pay off all your individual debts so you just have one loan to pay back. Talk to the Debt Advice Trust for advice on whether it will help with your debt.
Oh and one last thing! Be aware that some credit card companies have now lowered their APR from 3% to 2%.... Yes yes i know it sounds 'wicked' but literally it is wicked, as an average £4000 credit card loan will now take you approximately 4.1 years to pay off at 2%, where as it would take just 2.7 years at 3%.
I don't know about you, but I think life is definitely too short to be spent paying off debt! Start getting rid of your debt today!
