How to repay your credit card quickly

There is not a proper way to pay off credit card debt, but there are several tried and correct methods that can help you bring your balance to 0.Those methods are divided into two main categories - paying each individual debt or pooling all your debts into one monthly payment.

Let's take a look at four popular strategies to pay off credit card debt, along with the pros and cons of each to help you decide which option is best for you.

1. Snowball Debt Method

The snowball method is a repayment strategy that focuses on pre-paying accounts with the lowest balances. When you direct your larger payments to that balance, you continue to make minimum payments on your other accounts so that you end up paying no late fees, damaging your credit, or even insolvent.
To get started, list your account balance in order from lowest to highest. Set your budget to pay the minimum amount on all your credit card accounts except those with the smallest balance. For that balance, put as much money as possible to pay in half each month.

When the balance on that account is 0, transfer the amount you're using to pay into the account with the next lowest balance. Continue until all your credit card balance has been paid in full.
Let's assume you have three credit cards with balances of $700, $1,500 and $4,000. With the snowball rolling method, you must first pay the card with a balance of $700. You'll then switch to a card with a balance of $1,500, and you'll pay for the card with the last $4,000 balance.


The snowball rolling method is effective as you will probably see the progress quickly. When you win a few quick wins, you gain motivation. This can give you the motivation to continue working towards the goal of becoming debt-in debt-insolvent. Plus, less outstanding balances can make the process seem less pressured.


The snowball rolling method does not take into account the interest rate you are charged. If your larger debts are also the highest interest rates, you may have to pay interest by snowball method more than other repayment strategies.
So if your goal is to minimize interest payments while paying off debt, then another repayment method may be the better option.

2. Debt avalanche method

When you use debt clearing, you first focus your payments on high-interest debts, while making minimum payments for the rest of your account.
When the account with the highest interest rate is paid off, transfer the money you allocated to that account to the next highest-interest debt. Repeat the process multiple times as needed until all your credit cards have been paid off.

Let's assume you have three credit cards with APR of 22%, 18% and 12%. With the avalanche method, you will first pay the card with 22% APR. You will then switch to a card with an 18% APR and you will pay for the card with the last 12% APR.
AdvantagesThe biggest advantage of the debit method is the ability to save interest rates. If you're worried about how much interest you'll have to pay when you repay, this method can be a good strategy for you.


A repayment strategy that saves you money can be tempting. But if your account with the highest interest rate also has a large balance, it may take some time to pay off. And that can be against you in the task of becoming un indebted because it can cause psychological disoration.

Let's assume you have a $5,000 balance on the card with an APR of 22%. If you pay $300 a month for that account, it will take 21 months to pay off - as long as you don't use the card to buy anything else.
Two years is a long time to wait to eliminate your first debt. With the avalanche method, you may not get the quick wins that help create a sense of completion. So you are easily discouraged and lose motivation to keep moving forward.
If you need to quickly see progress to stay motivated, then snowball debt may be a better strategy.

3. Credit card astition loans

Personal loans used to integrate debt combine multiple account balances into one loan with one monthly payment - ideally with lower interest rates. You use the money from the loan to pay your credit card balance, then make a personal loan payment each month.


Credit card interest rates are usually higher than the interest charged on personal loans, especially if you have good credit. If you qualify, you may receive a debt-integrated loan that is lower than the credit card companies are calculating.

In addition, a debt-astification loan can help simplify your finance. Instead of paying multiple times per month, you only need to pay once for all your combined debts.

In addition, some debt astist loans offer flexible repayment terms, so you can choose a loan that fits your budget. And some lenders will send loan payments directly to your creditors, so debt astition loans can be a convenient option for paying your credit card.
ConsYou must meet the lender's eligibility requirements to be eligible for a debt a combined loan. If your credit history has a few days, you may not be able to borrow. Or you may only be eligible for the same interest rate as the interest you're paying on your credit card.

It is likely that you are not eligible for a loan large enough to cover the debts you want to integrate, which means that you can only a portion of your debts and still have to pay multiple times to different lenders.
Additionally, some lenders charge additional loan costs and eat into your money.

4. Credit card transfer balance

A credit card that transfers a balance may allow you to transfer your balance from one or more accounts to another. Typically, these credit cards have an APR offer that transfers a 0% referral balance if you transfer the balance within a certain period of time after opening an account.


If you pay off your balance before the referral period ends, you can avoid paying interest. Knowing that you have a limited amount of time before your referral offer expires can help motivate you to quickly repay.

ConsPaying off interest-free debt seems to be the best option, but if you make a late payment, your referral offer may be revoked. In addition, the promotional period is limited - and if you have a balance when it runs out, your account will accrue interest according to the card's regular balance transfer APR.

Additionally, you may be charged a balance transfer fee when transferring balances from other cards, and you can only transfer the balance to the credit line you were offered on the card. If the amount of debt you have is higher than the card limit, then this payment strategy may not be the best option for you. Also, even if you can transfer your entire balance, it may not be good for your credit score if the amount you owe is close to the limit on your new balance transfer card. So you also need to pay attention to that.
Next stepIf you're tired of living with debt, here are a few simple steps that can help you start your repayment journey.

Decide which repayment method is best for you.Budget to determine how much you'll allocate to repay each month.Eliminate or reduce as many costs as possible until you are no longer owed.Find ways to generate additional income - like taking on a second job or selling some of your assets - for faster repayments.Avoid using a credit card until you've paid all your balance in full.Paying off credit card debt requires patience and perseverance. If you don't want to do it alone and think there are some more guidelines that will improve your chances of success, consider working with a nonprofit credit counseling organization.