How to pay off a credit card? Not every person can do it right. Most often, the card is perceived as a punishment, although it is an excellent financial instrument. And all because people do not know how to pay off a credit card correctly.
There are several ways to do this correctly.
First way: minimum payments
The easiest way to pay off a credit card is to keep making minimum payments. Of course, this is an effective method, but it is quite long. This is because the bank calculates the payment schedule so that it stretches over the entire contract period. Another important point is that if you pay off the debt with minimum payments, then you cannot withdraw money in this case. Otherwise, there is no point in such a repayment.
Second method: full repayment
One of the easiest ways to pay off a credit card is to pay the entire amount of the debt. Its advantages include the ability to close the card quickly and use it if necessary infuture.
The problem is that not everyone can pay off debt in this way simply because of the lack of free funds in such an amount. But don't despair, because there are a few more options for paying off your credit card.
Third way: increased payments
If there is a desire to get rid of a credit card, but there is not enough money to fully repay the debt, then all further actions should be well thought out.
First you need to go to the bank that issued the credit card and find out the amount of payment there to close the debt. In addition, it is important to find out what interest is charged on the debt every month.
If these numbers are known, you can pay off your credit card by calculating the monthly installment. There are no clear repayment terms here, because everything depends only on the financial capabilities of the borrower. But according to statistics, in order to quickly close a credit card, you will need to pay a monthly amount twice as much as under the contract.
To be sure that the debt is decreasing, you need to periodically contact the bank and control how the debt is reduced.
Painless repayment rules
Not everyone can pay off their credit card in full all at once. Therefore, you need to take care to further facilitate this process for yourself. To do this, you need to follow certain rules:
- Use credit card for cashless payments only. Ideally, it is better to try to fit into the grace period. If the money spent is returned to the card inthis period, then you can continue to use them without interest.
- It is better not to withdraw cash from credit cards, there are several reasons for this. Firstly, the grace period after cash withdrawal ceases to apply. Secondly, the commission for withdrawal starts from three percent. Thirdly, if you do not withdraw money, then the debt will not increase, which means that it will be possible to repay it much faster.
- Each credit card has its own minimum deposit amount. The problem is that to pay off the debt, it is not enough to make only this payment. Ideally, the contribution each month should be at least two or even three times the amount of the monthly payment. After all, the sooner you return the money, the less you will have to overpay.
- An excellent solution would be to pay off debt through additional income, if any. For example, it could be a side job or money from renting an apartment.
- Automatic payment will also be a good helper. If you set it up, then the money will be debited from each salary, and the need to replenish the account on your own will disappear. But this works only if the borrower receives a salary in the same bank where the credit card is opened.
Each bank has different payment options. Consider the most popular, their pros and cons.
This is a standard way to deposit money on a card, but it is not always convenient. ATMs may not work, there will be an emergency power failure, the device may "eat" the card. However, it is one of the mostreliable ways for transactions with money. So it will be clear for sure that the money came to the card, and not lost somewhere.
There are banks that operate only online and do not have an actual office. These include Tinkoffbank. How to pay off a Tinkoff credit card? Go to the bank's website and open a personal account. Through it, it will be possible to transfer money from one card to another.
The convenience of this method is that you do not need to look for ATMs or stand in line at the branch.
But this method also has disadvantages. For example, the fact that the payment does not arrive immediately, and while it is on the way, a person will be very worried.
Personal bank visit
The most reliable way you can think of. How to pay off credit card debt and be sure that the money is in the account? That's right, come with cash to the bank. It takes relatively little time, but much more peace of mind. Of the minuses, there can only be a queue and not very competent bank employees.
As mentioned above, autopay is a good remedy for forgetfulness and squandering. It is worth setting it up, and every month money will be debited from the general account to pay off the debt. And if you still use the tips and increase the payment several times, then you can no longer wonder how to quickly pay off a credit card.
Only the impossibility of such atransactions if the credit card is in one bank, and the salary card is in another.
The nuances of closing the card
When a person has decided they no longer need a credit card, they should do the following:
- Check the balance of the card and pay off the existing debt.
- Make an application to the bank with a request to close the card. It is advisable to have on hand documents that confirm the payment. Some banks still need to write an application to close the contract.
- After all documents have been submitted, the borrower must receive a document stating that the account has been closed.
- Next, you will need to wait a bit. After, say, a week, you can call the bank and find out the status of the account at the moment. The paper issued by the bank cannot be lost or thrown away.
All these steps are necessary to keep your credit history good.
In conclusion, I would like to say that it is impossible to thoughtlessly draw up credit cards. It is from financial illiteracy that credit cards become an unbearable burden.
As ironic as it may sound, credit cards are for the we althy. Because to use it properly, you need money, which the average citizen hopes to get from a credit card.
Even if the credit card is already in your wallet, you can learn how to use it correctly. To do this, you need to learn the basic financial rules, and then a credit card from an enemy will become a friend.