Get Rid of Credit Card DebtFree yourself from credit card debt
Simple ways to combat credit card debt
When you have stacked up a heap of credit card debt in the last few month and you are worried about how you will get it off, don't worry, there are many ways to grab it and get on your financials in no amount of tide. Reducing the interest you owe is one of the fastest ways to get rid of credit card debt.
This can be done by moving your debt to a new card with a 0% balance transaction in it. In this way, you can prevent having to pay interest for a certain period of timeframe - at best up to three years - which should help you create a depression in your debt.
Remember that you usually have to make a payment (typically about 2%-3% of the total debt) to make your bank wire, but this can still be worthwhile considering the amount you will be saving overall. For example, the MBNA Platinum credit card provides 0% for 36 month on balances transferred in the first 60 business day and has a charge of 1.99% (the charge increases to 5% after the first 60 days).
Do your best to settle your debts within these 36 month, because after that you will be paying 21. 9 percent pa (variable). It has a representive interest of 19.9% APR (variable)*. It' s noteworthy that you need a good credit rating to get the most competitive credit card transaction possible.
However, by using our eligibility check tools, you can see the card for which you are most likely to be approved without compromising your credit rating. When you can manage to clear your credit in less amount of your life, some Balanced Transfers provide faster 0% payment cycles, but no fees, so you can still earn more than that.
The Santander Everyday Credit Card, for example, provides 27 monthly at 0% on credit transfer and is free of charge (once the 0% screen expires, you charge 3% on all new transfers). Thus if you had a debt of 2,500, for example, and you were paying off 95 a month, you would clear it within 27 month and not have to pay yourself a penny of interest.
If you do not repay your credit within 27 month, you will be charged 18. 9 percent pa (variable). It has a fare of 18. 9 percent APR (variable)**. When you are not able to settle your debt before the interest-free slot ends, you can move it to another 0% balance card transfers, but the issue is that you may have to make another payment.
But if you would rather not move your debts any further, an option is to use a credit card with a low interest rates that holds for the lifetime of the debts. For example, the Bank of Scotland will offer a Low Rates Card with a prestigious interest of 6.4% APR (variable)*** and no wire charge if you make your wire within the first 90 trading day (after that you will be charged 3%).
If you have debts on a series of credit card, always attack those with the highest interest first. Establishing a credit card account every month ensures that you do not miss a single transaction on your credit card. When you miss out on a purchase, you will be billed a delay charge and you may loose your 0% interest rat.
Do not use your credit card for cash: If you use a credit card for payouts in hand, you usually incur a charge, plus interest from the payout date. When you receive a 0% credit card, you should not use it for purchases: You can use your card for its own purposes - to clear your debt.
Prestigious example: Spending 1,200 at a buying interest of 19.9% p.a. (variable) will make your representational interest charge 19. 9 percent APR (variable). Prestigious example: When you issue 1,200 at a buying interest of 18. Your average tariff is 18.
9 percent APR (variable). Prestigious example: Spending 1,200 at a buying interest of 6. 45% p.a. (variable) will make your representational interest 6. 4 percent APR (variable).