Tips to Effectively Manage & Pay Off Credit Card Debt


People use credit cards because of the convenience, safety, tracking and reward benefits that it offers. However, these are the same features that tempt them into overusing it. Managing credit cards effectively can be a daunting task. But, with proper budgeting, attention to due dates, having a well-defined usage plan, paying more than the minimum due, and discussions with a credit counsellor, you can easily manage credit card debt. Here are some tips on how you can effectively manage and pay off your credit card debt.

1. One-time Settlement

One-time settlement refers to a debt-settlement strategy wherein the creditor agrees to accept less than the outstanding amount on the condition that the debtor pays the remaining amount in a lump sum. One-time settlement usually happens in a rare case when the credit card issuing company is convinced of the genuineness of your reason for non-payment.

The credit card issuing company usually agrees to a one-time settlement due to two reasons:
1. Either they fear you won’t be able to pay the full amount
2. Or the creditor company needs money desperately

In both situations, the company is able to avoid a considerable financial loss. Since the one-time settlement entails negotiations and a lot of other formalities, it is best to take the help of a debt settlement company that is skilled in this business, such as Freed.

2. Practise Responsible Spending

Any kind of debt settlement is cumbersome and is likely to put a lot of pressure and stress on you. Therefore, it is best to avoid the debt settlement situation at all costs. Responsible spending not only just saves you from a debt-settlement situation but helps strengthen your overall financial profile. You should ideally map out your calendar strategically to avoid missing out on any monthly payments.

Look for ways to reduce your monthly spending to match what you can actually afford to spend. Only put those expenses on your card that you will be able to pay off in a three-month period and avoid impulse buying at all costs.

3. On-time Bill Payments

One of the best strategies to manage credit card debts effectively is to pay the bills on time. Not just some of the bills, not just some times. All the bills and at all times! Just by being late for once, you can cause yourself a lot of financial harm. Nearly all the credit card issuing companies levy a late fee even if you miss out on one payment.

4. Credit Card Payment Strategy

Set up a repayment strategy that is Specific, Measurable, Attainable, Realistic, and Time-bound (SMART). Next, you must place the reminders of the ultimate goal in conspicuous places. Some of the credit card payment strategies include:

Paying more than the minimum amount
Using the debt snowballing method, which includes paying off the lowest debt first and then, with the motivation of achievement, rolling the amount freed up into the next smallest balance.
Automating your payments, which helps to avoid late fees, penalty interest, and bad reports to the credit monitors.

Wrapping Up

You can start to live a debt-free life by systematically eliminating your debt with India’s debt management company, i.e., Freed. With Freed, get the best debt management plan, and stay protected all the time. It is the best credit card debt relief agency that can help you to reduce your outstanding debt by up to 50%. So, stay financially secure under the guidance of the experts.

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