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Credit card Q&A: “How to pay off credit card debt?”

There are several ways to pay off credit card debt, but perhaps the best method is to transfer existing balances to low interest credit cards, or even better, a 0% APR credit card.

By doing so, you’ll be able to lower the APR tied to the balance(s), which will result in fewer finance charges.

Let’s look at an example:

Current credit card debt: $5,000
Current credit card APR: 19.99%
Monthly finance charges: $83.30

(How to calculate credit card interest.)

Instead of paying nearly $100 a month in finance charges, you can ask your credit card issuer(s) to lower your APR.

Essentially, you’ll threaten to move the debt to another card issuer if they don’t play ball. This is one

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I was troubled to learn recently that even with the recent trouble in the news about people having Debt Consolidation Management problems, credit card debt has gone up by 7.1% in April in comparison to the same month last year.

It’s thought that consumers who haven’t had their credit rating battered by entering a Scottish Trust Deed or an IVA, are taking advantage of carrying out some much needed Debt Consolidation by transferring card balances.

The rest are just not listening to the news and are forgetting that we’re still feeling the affects of the deepest recession for decades. Some may not appreciate that just paying the minimal amount each month might mean a repayment term of at least 30 years before the balance has been paid off.

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