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5 Tips to Pay off your Credit Card Loan Quickly and Easily

5 Tips to Pay off your Credit Card Loan Quickly and Easily

It is not easy to pay off debts. It is possible that the debt is too big and you are out of options but the important thing is that you do not need to lose hope because if you keep looking. There are always options which will help in relieving the burden of the debt. You have to look for better options if you feel that the debt is going out of control. While looking for options the main thing that should be on your mind is how to reduce the burden and make the paybacks manageable.

Here are some tips that will help in paying off the credit card debt quickly and easily.

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1. Know where you Stand

The first and foremost thing you need to understand is your financial position. If you have more than one credit card with balance then you need to know the name of each card and their interest rates. It will help in knowing how much you can set aside for repaying the debt. It is better to make a list of income and expenses. If the expenses are exceeding income then you need to improve the flow of cash.

2. Negotiating the Interest Rate

You will find it easier to get rid of the debt if you are able to negotiate for a lower interest rate. If the interest rate is high then you will find it difficult to keep up with the monthly burden of the debt. Having lower interest rate can offer huge relief. Lower interest rates mean that the monthly payments will be small so you can easily pay them without putting too much stress on the budget. If you want to get relief by lowering the interest rates then you need to have a good credit score.

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3. Considering the Option of Personal Loan

If the debt is too large then paying it off with a personal loan is an excellent option. The personal loans have a lower interest rate as compared to the credit cards. With low-interest rates, you are able to save more cash and use it to pay the principal balance. It will not just allow you to pay your debt faster but will also help in saving money in the process. You can negotiate with the personal loan lenders about the interest rate and the size of installments.

4. Two effective Strategies in Paying off the Debt Faster

Debt snowball and debt avalanche are two strategies that are hugely helpful in paying off your debts.

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The debt avalanche strategy focuses all the effort on the credit cards which have the highest interest rates. In this strategy, you should pay the minimum on all the credit card balances. The extra funds that are left after making your payments should be dedicated to the one which has the highest interest rate. Once you have manages to pay off the debt of the card which has the highest interest rate, move on to the next one with high rates. It is an excellent method for paying off debt while saving some money.

The debt snowball strategy is opposite and the focus is on the cards with the lowest balance. In this strategy, you pay off the smallest debts first and work upwards from there. When you manage to pay the small debts, it will lift your spirits and keep you motivated as you will know that paying off debt is not impossible.

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5. Look for a balance transfer:

If you are unable to negotiate for the lower interest you can consider transferring the balance. Transferring the balance means that you can take debts of high-interest cards and move them to a different card which has a lower interest rate. It will also give you the benefit of making just one payment in a month. You can get a reduction in the monthly payment if you have a good credit card score. Reading the contract carefully is also important because there are some credit cards which have high transfer fees.

All of these methods are a good option for getting rid of the credit card debt quickly. To make sure that you have chosen the perfect strategy, you need to consider your financial situation thoroughly. You do not always have to settle for just one strategy. You can also use a combination of two methods to make things easier.

Featured photo credit: Credit Sesame via creditsesame.com

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Adnan Manzoor

Data Analyst & Life Coach

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Published on July 4, 2018

Top 10 Recommendations on Money Management Apps

Top 10 Recommendations on Money Management Apps

Don’t want to overspend your budget, swipe your credit card too many times, and feel like a financial mess? Instead of beating yourself up for the bad financial decisions you’ve ever made, create a new plan!

The solution is simple, save more and spend less. But, we all know it’s easier said than done.

One problem is finding quality apps that save you time and money, and aren’t just hype.

Luckily, there’re many great money management apps available at your fingertips. Here are 10 reliable money management apps that can help you save money, and crush debt.

1. Personal Capital

    When was the last time you’ve tracked your net worth? Probably months ago or maybe never. Personal Capital allows you to easily track your net worth and plan for retirement.

    Here are some of its main features:

    • Sync many investment accounts, and expenses (mortgage, credit cards, etc.) in one place
    • Discover hidden fees and how much they’re affecting your retirement plan
    • Wealth management for investors requiring a long-term strategy

    With Personal you’re free to track your expenses and net worth.

    Available for: iOS and Android

    2. Mint

      If your smartphone could only install a few apps, Mint would be one of them. Why? Because Mint tracks all your balances and bills in one place.

      Here are some of its main features:

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      • Effortlessly track all your bills and balances in one dashboard
      • Categorized expenses to understand where you spend your money
      • Uncover hidden fees, and determine your investment style with sophisticated retirement tools.

      Feel at ease with managing your money by a reputable company that isn’t going anywhere.

      Available for: iOS and Android

      3. YNAB

        Everyone needs a budget, there’s no way around it. YNAB (You Need A Budget) is an easy to use app that will change the way you think about money. Their motto is to “give every dollar a job”, and you’ll quickly discover why.

        Here are some of its main features:

        • Easily sync all bank accounts in one place
        • Visually see your debt paying progress with eye-catching charts and notifications
        • Customized categories setting saving goals

        The best part about YNAB is the community that comes along with it. You can hop on the YNAB forum to receive support, listen to the YNAB Podcast or stay tuned for their weekly videos.

        Available for: iOS and Android

        4. Wealthfront

          Albert Einstein once said “compound interest is the eight wonder in the world”, and for a very good reason. The problem is, most people are scared or unwilling to learn the basics of investing. This is why Wealthfront is the perfect solution for the hands-off investors.

          Here are some of its main features:

          • Variety of investment account options including IRA, Roth IRA, and more
          • Your portfolio composed of 7 different asset classes
          • Automatically rebalanced portfolio
          • Daily tax loss harvesting

          Wealthfront is perfect for people requiring investment guidance, or prefer a hands-off solution.

          Available for: iOS and Android

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          5. Clarity Money

            If you’re staying on top of your budget but want to take your finances to the next level, Clarity Money can help you. Clarity Money helps you stay under budget and build a personalized savings plan.

            Here are some of its main features:

            • Easily cancel subscriptions with one click
            • Synchronize bank accounts fast
            • Transfer money effortlessly between different accounts

            Clarity Money isn’t an app that does it all. But, it does make transferring money and canceling subscriptions fast and efficient.

            Available for: iOS and Android

            6. Acorns

              What if there was a way to quickly gain confidence in investing your money, without too much risk? There is, and Acorns is your solution. With Acorns’s technology, you’re able to make investments as small as $5.

              Here are some of its main features:

              • Automatic contribution option
              • Customized portfolio tailored to your needs
              • Low management fees ranging from $1-$2 per month

              Stop wasting dollars on expensive coffee. Instead, invest them towards a brighter financial future.

              Available for: iOS and Android

              7. Albert

                Do you budget by only subtracting your expenses from your income? If so, how would you discover any overpayments or extra money you could save? This is where Albert shines, and it does it all free.

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                Here are some of its main features:

                • Receive notifications for overpayments, hidden fees, and low balances
                • An Automatic budget that’s built around your spending and income
                • Easily track debt and set new financial goals

                While Albert does offer a paid option, most of its core features are FREE. So, what better option to save?

                Available for: iOS

                8. Prism

                  Have you recently forgot to pay a bill because life got in the way? Prism automatically tracks your bills and syncs your bank accounts in one place.

                  Here are some of its main features:

                  • View all your account balances in one glance
                  • Bill due dates are automatically pulled and tracked
                  • Receive early reminders for upcoming bills

                  If your budget is on “fleek” but can’t seem to stay on top of your bills, Prism is your go-to app.

                  Available for: iOS, Android, Windows, Amazon

                  9. Mvelopes

                    Remember hearing about people using envelopes to budget their money? Well, Mvelopes is the new envelope system for this generation. Easily create monthly budgets and track your saving goals.

                    Here are some of its main features:

                    • Connect unlimited bank accounts
                    • Real-time budgeting with auto transaction syncing
                    • Low monthly $4 fee or $40 annual

                    Mvelopes can help you crush debt, save more, and help you stop overspending. With its low monthly fee, it’s worth a try.

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                    Available for: iOS and Android

                    10. Wallaby

                      Most people don’t have time to track their credit card’s changing rewards and interest rates. Because of this, you need help reaping the most of your credit card’s rewards. Wallaby is the app that will help you do just that.

                      Here are some of its main features:

                      • Automatic recommendations for the best credit card to use for each transaction
                      • A friendly user interface, displaying credit cards with their corresponding images
                      • Free to use

                      If you’re using the same credit card to make your purchases, you may be leaving money on the table. Give Wallaby a try if you’re ready to maximize your credit card’s rewards.

                      Available for: iOS and Android

                      Take control of your finances and experience financial freedom

                      Picture yourself staying on budget and saving more money than you’d ever imagined.

                      It took hard work and dedication but you’d finally learned how to manage your money. You have to start taking control of your spending and saving habits.

                      You now have a list of reliable apps that can help you build better money habits, what are you waiting for?

                      Featured photo credit: Pexels via pexels.com

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