Human psychology is designed in such a way that we get more of what we already have. If you have one credit card, you are probably going to get more. If you are already in that situation, chances are that you are trying to pay them off at the same time. Read this full article to get six proven strategies for paying off your multiple credit cards.
Different credit cards have their own perks or offers. Some of these perks include very good rewards, lower debt utilization, and a variety of ways to buy things now and pay them off faster.
How To Pay Off Multiple Credit Cards
However, if you are already behind on paying some of your credit card bills, it can seem tough to dig yourself out of this terrible situation.
The Best Tips To Help You Clear Out Your Multiple Credit Card Debts
Here are some of the best tips to help you get out of this situation fast.
Pay More Than The Required Minimum Payments
If you want to get out of debt faster, pay more than you are expected to pay. This is one of the simplest ways to clear your credit card payments.
This method is very effective; it will chisel down your total debts and avoid the unnecessary accumulation of interest.
You can make use of one of the following methods:
The Snowball Method
Here, you can pay all the minimum balances due on all your cards, and after that, you can start paying off the rest of your balances for the card with the lowest accrued debt. Immediately after you pay off all the balance on one card, you can use the money you were using to pay off the balance on the next lowest credit card debt.
You can continue this process until all your debt has been paid in full.
Right here, you have to follow the same steps as the snowball method. However, you begin with the card that has the most debts or balances first. Continue until you have cleared all your balances.
Get A Personal Loan
If you have run out of money and cannot pay off your bills on time, it is advisable to get a personal loan. This way, you can get a loan that will help you pay back your bills over a long period of time.
If you get a loan with a lower interest rate, you will be paying less over time than you will pay one by one with your pre-established interest rate.
With this system, you can have typically fixed and predictable installment loans, which could make budgeting your monthly payment considerably easier.
Consolidate Your Debt With A Balance Transfer Card
If your debt is pretty extreme, this is one option you should consider if you cannot pay it back. Consolidating your debt with another card will negatively impact your credit score. However, if you want to go down this path, search for a card that offers 0% APR on balance transfers with a low balance transfer fee.
Avoid this card for purchases; save it only for the payment of your debts.
Reduce Your Use Of Credit Cards
You should avoid adding more debt now that you know you have a handful on you.One of the best ways to do this is to stop using your credit cards. Instead, normalize the usage of debit cards, which use the money you already have in your bank account. That way, the bills on your credit cards will not keep increasing, and you can work on the debts you already have.
Use Bill AutoPay
If the problem you have is not the number of bills you have but sticking to the payment dates, then you should consider setting up an autopay on your credit card bills.
This way, you can have the money debited automatically from your account at the due time without taking any action.
Only then do you need to have enough money in your bank account at the set date.
Negotiate For A Lower Interest Rate
It could be that the interest rate is too high for you each month. The interest could be making it harder for you to pay down the total amount you owe every month. If you can stop using a credit card every day, you can contact your creditor and request a lower rate.
Is Having Multiple Credit Cards Bad?
No one can really state a definite answer to these, as different users have different capacities. However, having at least one credit card for rewards and convenience is not a bad idea. If you want to have credit cards, you must not have issues managing money, and you must be able to make payments early enough.
How Many Credit Cards Are Too Many?
We cannot say there is a specific threshold for the number of cards you can use. Two cards can be considered too much for a person who is not capable of managing them or making two separate payments.