Simply put, if you have credit card debt, you are doing your financial standing a disservice.
Set a short-term goal to pay down your credit card debt significantly this year!
There are a number of reasons to pay off your credit card debt, like the fact that:
Think of interest as potential savings lost. Interest only adds to your financial burden and makes it harder to get control of your debt balance. Plus, interest rates can go up. Focus on paying down any credit cards with higher interest rates first! Call your credit card provider to discuss your rates. Find out if you qualify to transfer your card balance to another one of your cards with a lower interest rate. Another strategy is to pay down your smaller debts first, a tactic known as the snowball method.
It Impacts Your Credit Score.
Too high a debt can negatively affect your credit score. A higher credit score will help you qualify to lease better apartments and receive better terms on financial tools like car and home loans. Set a goal of paying down your existing credit card debt as much as possible. Your credit score will thank you!
Less Debt Translates to More Savings.
Once you are free of your credit card due dates, you can put the money you would have paid on interest toward your savings objectives! Set a goal to also restrain your credit card spending to what you can afford to repay at the end of each month. If you are struggling to restrain your credit spending, consider leaving your credit cards out of sight at home and keeping yourself to a cash budget.
Ready to improve your credit score? More healthy credit habits and useful savings tips are available at the Syncis Money Blog today.