A credit card is a valuable resource; there’s no two ways about it. Unfortunately, the same benefits that attract people to taking out several credit cards are the same features that often make it all too easy to overuse. However, when the balance comes due, and a portion of it ends up carried over to the next month, the high interest rates start to accrue. That’s where most people get into trouble. Luckily, there are ways to effectively manage credit card debt and make financially sound decisions to pay it off.
One great option to check out is WECU, a not-for-profit financial cooperative for Washington residents. They offer a wide range of banking products, discounts, and services that come standard for all of their members, making them one of the most popular financial cooperatives in the state. Head to https://www.wecu.com to learn more information about the comprehensive banking services they offer and how they help their members manage their credit card debt responsibly.
Methods to Pay off Credit Card Debt
According to CNBC, the average credit card balance in Washington is over $6,000! There are several different methods that are effective to pay off credit card debt. However, cardholders with large balances should be forewarned that these methods take time, effort, and consistently sound financial decision-making, but they do work.
1. Avalanche Method
This method was made popular by financial guru Dave Ramsey, who gives excellent financial advice to listeners and readers everywhere. This method consists of paying the minimum amount on every account while putting as much money as possible into the account balance with the highest interest rate. If there are multiples with the same high rate, choose the account with the highest principal. After the highest debt and interest accounts are paid off, work down the line until every debt is paid.
2. Snowball Method
The snowball method is the inverse of the avalanche. Start by making minimum payments on each account, putting all the extra money towards the account with the lowest balance. Once that’s taken care of, continue up the line working up to the highest balance until everything is paid off. For more information about this method, you can head to https://www.wecu.com/ to consult with the financial experts, who can help determine the next best step forward to help eliminate any current debt.
3. Balance Transfer
Using the balance transfer method is a popular method for those who have an account with a high interest rate. The balance on that account is transferred to a new account with a lower rate, making it cheaper over time to pay off. Essentially, this is opening a new card to pay off an old one. However, it’s essential not to use the new card for any other charges besides the balance transfer at the risk of accruing more debt and being counterproductive to the end goal.
4. Personal Loan
One option is a personal loan. However, this involves research and work to find the right provider. If a lower rate is available, it could be worth considering this option, as it may be less expensive overall.
Pay Off Credit Card Debt with These Methods
Paying off credit card debt can seem insurmountable at times. However, it’s crucial not to lose hope. It may seem like a huge obstacle, but with some time, effort, and hard work, it can be done. Making smart and responsible financial decisions is a significant aspect of paying off debt. With better habits and practices, it’s entirely possible to take back control and pay off any amount of debt, no matter how large or small.
Visit https://www.wecu.com/contact-us/ for more information.