Don’t only pay the minimum amount due on your credit card

We have all had moments where paying our debt is not our top priority. This can be both large and small amounts of debt. As modern consumers, there is always something tugging at our wallets. It could be unavoidable expenses or perhaps a luxury purchase like a new phone, laptop or the latest PlayStation you’ve had your eye on.

When it comes to debt, whether it be luxuries or essentials, paying off a credit card balance as soon as possible is in your best interest. Having a relatively low credit card balance that’s taking overly long to settle could mean that your budget needs to be readjusted to suit your needs.

For most consumers living on an average salary, debt itself is not inherently a problem; successfully managing debt is the problem. By choosing to pay off your unavoidable debt before chasing luxuries, you can avoid the risk of overspending and damaging your credit rating. Too many consumers don’t realise this until it’s too late.

If you are facing growing credit card bills despite staying on top of your payments, there are steps you can take to get over the debt hill.

Firstly, don’t only pay the minimum amount due on your credit card. Try paying as much as you possibly can. It may seem like an unnecessary expense, but it will result in substantial savings in the long run due to high interest rates based on the total amount owed. Therefore fewer larger payments are more beneficial than minimal amounts over a long period where a majority of your instalment covers the interest.

Secondly, avoid using credit on your day-to-day purchases. Try and stick to one big purchase on credit and settle it in full before accumulating more debt. A prime example would be to spend your cash on everyday living and spoil yourself with something pricey every once in a while. Lastly, avoid using credit for fun nights out. It might seem harmless at first, but orders can tally up quickly and land you in hot water at the end of the month.

To make debt your servant, you need to make cash your king. Never skip a credit card payment and always try to pay a little extra every month. It might seem impossible at the moment, but it will lead to a better financial future. At Debtco Group, we pride ourselves on delivering fast and efficient debt counselling services with a client-centric approach designed to put your needs first. If you need help managing your credit card payments, contact our team or complete our online form, and we will contact you.