If only paying off your account balances was as easy and fun as using your credit cards. But what happens when your statement arrives, and you can’t pay the entire bill? Interest is added to your balance, and before long, you might be paying off a much larger amount even if you don’t charge anything else. By staying on top of your spending, you can have all the benefits of using credit cards while putting the brakes on debt.
When you carry large balances on your cards, you face more than just larger bills. Too much credit card debt can lower your credit score. A lower credit score can affect your ability to get a job, buy affordable insurance, or qualify for low mortgage or car loan rates. Following are steps to manage your debt.
Consider making larger payments on the card with the biggest balance. Or pay off the card with the highest interest rate first. As soon as you’ve paid off the balance on one card, pay off the card with next highest balance.
Pay as much as possible even if you can’t pay off the entire balance. Making only minimum payments could significantly increase the amount you eventually pay.
Late payments may result in fees and a lower credit score.
You might not miss your credit cards if you don’t use them. Develop a spending plan. Small changes can lead to significant savings over time.
Article is adapted from content provided by DTS.
