Smart Ways to Pay off Your Credit card Debt Fast

A credit card is essentially designed to solve your financial problems and not add to them. You can use a credit card in UAE to practically buy anything under the sun, ranging from groceries to big-ticket purchases like televisions, laptops, mobile phones and sometimes even cars. This is a great convenience to have, of course, if not used recklessly, as that can easily direct you towards a debt trap via a one-way ticket! The best way to not add to your credit card debt is to spend more than what you can payback. If you follow this motto, you will be able to enjoy all the advantages and perks associated with credit cards. We’ll give you a few easy tips on how you can pay off your credit card debt in a quick and easy manner.

Tips on How to Pay your Credit Card Debt

 Follow these few simple tricks to avoid any debt related to credit cards as well as pay off existing dues.

1. Target One Card

If you have more than one credit card, focus on one, especially one with a higher penalty interest rate. Typically, pay the minimum due on all the cards and then pick the one card you need to pay off the debt and start making payments towards it as frequently as you can to finish off your dues. After this, get on the second card and the others in this fashion. This will help you free off each credit card systematically.

2. Don’t Stick to Minimum Payments

Paying the minimum amount is very tempting, especially when your monthly bill is high in number and your minimum due is a fraction of the amount. Always pay your bills in full, so you don't accrue added interest charges. This allows you to use your cards debt-free and maintain a good credit score, which helps you with future financial transactions.

3. Pay in Instalments

When you use a credit card in UAE, you are definitely falling into an income bracket that allows you to own a credit card. However, overuse leads to debt. Many issuing card companies allow you to pay your monthly bills in EMI’s as opposed to a one-time payment in full. Take this option if you are struggling to pay the bills and pay those instalments within the stipulated time limit.

4. Auto-Debit Option

Banks have an automatic debit option for your credit card payments in which every month, your bank account automatically debits the credit card amount on a specified date. Sometimes, forgetting to make the bill payment on time also adds to interest charges. This facility can free you of those unnecessary charges, and you can keep using your card seamlessly without the stress of keeping a tab on your bill cycle and making individual bill payments every month.

5. Limit Your Cards

It is easy to get swayed by attractive offers by credit card companies, so one tends to get more than what they need. Often, you only need one credit card that is best suited for you to help you manage your expenses, so stick to the one that is most beneficial to you and get rid of the ones you do not have any use for. Many companies even send add-on cards which you can give your family members if you don't need them. If you don't really need them, don't unlock them and don't use them. The more you use, the more the charges accumulate, then add to your credit card debt.