Nearly half of Americans that have credit cards don’t pay their monthly bill in full. And given the rising credit card interest rates, paying off the balance and interest can become more unmanageable if left unpaid for a long time. That’s why, to avoid paying the rising costs of interest rates, it’s best to find practical credit card solutions in Naples to pay off your existing debt.
There are a number of things you can do to address your credit card debt. Take a look at some of these solutions to see which options apply to you and what you can do to avoid the rising costs of interest rates.
Pay More Than the Minimum Payment
Around 11% of American credit card holders only pay the minimum required amount. This is enough to pay the interest, but this barely covers the balance. If you’re currently paying the minimum, you might find that this barely makes a dent on your credit card debt.
If you can’t afford to pay your entire credit card, try paying at least double your minimum payment. This can help you pay off your credit card in less time.
Restructure Your Budget
If you’re following a budget at the moment, you could reduce your credit card debt by making certain budget cuts and putting the saved costs into paying of your credit card bill. For instance, if you cut back on expenses like entertainment, food, clothes, and others, you could pay off a larger chunk of your credit card debt.
During this time, you may find it difficult to cut back. Steps like buying cheaper brands of the household items you normally buy and foregoing some non-essential luxuries can be tough to adjust to, but think of it as a temporary solution while you find ways to pay of your credit card debt. Once your debt has become more manageable to pay off, you can return to your usual buying habits.
Apply for a 0% Credit Card
For those who have one or more credit cards, check what the credit card interest rate is. If you have a good credit score, you may be able to apply for a credit card with a 0% introductory interest rate and then transfer your balance to that card. It won’t be 0% interest forever, but during that 12 to 18 month duration, you can focus on dropping your balance down without interest eating up your payments.
Of course, this option isn’t available to everyone. You may need at least a credit score of 690 to be considered for a 0% interest rate. Some cards may also charge 3- 5% of your transferred balance, but the switch could be worth it if it means avoiding interest long enough to pay off a significant part of your debt.
Pay Off One Debt at a Time
For those with multiple credit cards, it’s actually more practical in the long run to focus on one credit card at a time than to try to spread payments between all the cards. Doing the latter can make it difficult to pay more than the minimum amount, while clearing debts one at a time can help you allocate your budget and reduce interest.
There are two ways to go about this method. One way is to focus on the credit card with the highest interest rate first. This reduces the interest accrued from time. But if all your cards have roughly the same rates, start by paying the card with the smallest balance.
Sell to a Professional Home Buyer!
If your debt has reached a point where the other options may take too long or aren’t feasible in the near future, you might want to consider the option of acquiring cash by selling your assets. One credit card debt solution is to sell your house in Naples fast and use the proceeds to pay off your debt.
Listing your property on the real estate market can take time and resources that you might not have. However, selling to a cash home buyer in Naples, Florida can give you fast and convenient home selling solutions.
Contact Alpha Properties to Learn More
There are a number of ways to resolve credit card debt. While some options can take time and cutbacks in your spending habits, selling your property can also be a potential solution. At Alpha Properties, we’re here to help you find solutions for financial stability by selling your property for fair prices.
Get in touch with us today to learn more about our home buying process.
