The best way to pay off your credit cards is to pay either early, [before the date that the bill is due] or pay on that date. By paying off our credit card bill on or before the due date, you are ensuring that you will incur no APR [Annual Percentage Rate] charges.
However, if you are late in paying your credit card bill, then you will not only have to pay the original bill, but any extra charges that are put on top of that bill [Annual Percentage Rate] if you are late in paying your bill, then you will not just have to pay anything extra added to the original bill, but you will gain a ‘bad credit’ scoring against your name as well.
Do not pay the minimum amount you can off your bill. This only prolongs your agony – because the whole bill will still have to be paid off sooner or later. However, paying the bare minimum may not be good for you in the long run, but it is great for the banks. Taking your time to pay off your credit card bill plays into the hands of the banks. They will simply add Interest onto the original amount you have to pay off. This ‘Interest’ will continue to be added on until you have paid off all of your bill.
This means that the banks continue to make interest on your bill [the more interest they make, the less money you have to carry around with you.] So, what you must always try to do is to pay as much off your bill as you possibly can. If the minimum payment you make each month is around $200.00, then double it and pay $400.00 – if it is $100.00, then double it to $200.00. Double whatever the minimum amount it is you have been paying, and you will soon pay off your credit card bill with no added interest.
Of course, in order to do this you must eliminate all the none- essential things you have been buying. Cut out eating in restaurants, and eat at home instead, it will save you money. Cut out desserts – which again, you can spend a lot of money on. By cutting these out it will free up more of your money in order to pay off your credit card bill.
Sacrifice the things that you like doing, for the foreseeable future, and you will soon free up those dollars. Any extra cash you save by doing this, you will put toward your credit card bill. By getting into the habit of purchasing only those things you ‘NEED’ and NOT the things you ‘WANT’, the money you will save will be a tidy sum indeed.
You have to sacrifice in order to accumulate, and by doing this you will be able to pay extra what you have been doing, toward your credit card bill. There is a lot more that can be said about paying off your credit card bill, and the links for further information can be found at the end of this article.
‘Snowball’ your credit cards. That is to say that if you have more than one credit card, look for the one with the lowest interest rate. If you have not reached the maximum limit on that particular card, consider transferring your card over to the one with the lowest interest rate. [so you are not paying as much ‘interest’] This is known as ‘snowballing’, and it is perfectly legal to do this.
At the end of the day, you will be saving yourself a lot of trouble and expense, if you pay off your credit card bill early – or on the due date. You will saving your name incurring a ‘bad-credit’ scoring too.