How to pay off a credit card? Not everyone can do it right. Most often they begin to perceive the card as a punishment, although this is an excellent financial tool. And all because people do not know how to pay off a credit card correctly.
There are several ways to do this competently.
The first method: minimum payments
The easiest way to pay off a credit card is to make minimum payments constantly. Of course, this is an effective method, but it is quite a long one. That's because the bank calculates the payment schedule so that it stretches for the duration of the entire contract. Another important point is that if you pay off the debt with minimal payments, then you can’t withdraw money in this case. Otherwise, there is no sense in such repayment.
The second way: full repayment
One of the easiest ways to repay a credit card is to pay the full amount of debt. Its advantages include the ability to close the card quickly and use it if necessary in the future.
The problem is that not everyone can repay a debt in this way simply because of the lack of available funds in such quantity. But do not despair, because there are several more options on how to pay off a credit card.
The third method: increased payments
If a desire to get rid of a credit card has appeared, 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 there the amount of payment to close the debt. In addition, it is important to find out what interest is accrued on debt every month.
If these figures are known, then you can pay off your credit card by calculating the monthly fee. There are no clear maturities, because it all 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 make a monthly amount twice as large as under the contract.
To be sure that the debt is decreasing, you need to periodically contact the bank and control how the debt decreases.
Rules for painless repayment
Not everyone can completely pay off a credit card at a time. Therefore, care must be taken to facilitate this process in the future. To do this, you must follow certain rules:
- Use a credit card only for cashless payments. Ideally, it is better to try to fit into the grace period. If the money spent is returned to the card during this period, then they can be used 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, withdrawal fees start at three percent. Thirdly, if you do not withdraw money, then the debt will not increase, which means that it can be repaid 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 times, or even three times, the monthly payment. After all, the faster you return the money, the less you have to overpay.
- An excellent solution would be to pay off debt at the expense of additional income, if any. For example, it can be a part-time job or funds from an apartment.
- Automatic payment will also be a good helper. If you configure it, then the money will be debited from each salary, and the need to replenish the account will disappear on its own. But this only works if the borrower receives a salary in the same bank where the credit card is open.
Making payments
Each bank has different payment options. Consider the most popular, their pros and cons.
ATM
This is a standard way to deposit money on a card, but it is not always convenient. ATMs may not work, an emergency power outage occurs, the device may “eat” the card. But still, this is one of the most reliable ways for money transactions. So it will be clear that the money came to the card, and not lost somewhere.
Internet bank
There are banks that operate only on the network 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 your 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 there are also disadvantages to this method. For example, the fact that the payment does not come immediately, and while he is on the road, the person will be very worried.
Personal visit to the bank
The most reliable way you can think of. How to pay off credit card debt and be sure that money is in the account? Right, come with cash to the bank. This takes relatively little time, but peace is much more. Of the minuses, there can only be a turn and not very competent bank employees.
Auto payment
As mentioned above, car payment is a good remedy for forgetfulness and squandering. It’s 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 will no longer have to wonder how to quickly pay off a credit card.
The only disadvantages include the impossibility of such an operation, if the credit card is in one bank and the salary card is in another.
Card closure nuances
When a person has decided that he no longer needs a credit card, he must do the following:
- Check the card balance and pay off existing debts.
- Make a statement 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 the documents have been handed over, the borrower should receive a document in his hands stating that the account is closed.
- Then you will need to wait a bit. After a week, for example, you can call the bank and find out the status of the account at the moment. The paper that was issued in the bank cannot be lost or thrown away.
All these steps are necessary so that the credit history remains good.
Conclusion
In conclusion, I want to say that you can not rashly issue credit cards. It is from financial illiteracy that credit cards become an unbearable burden.
Paradoxical as it may sound, credit cards are for wealthy people. Because in order to use it correctly, you need money that the average citizen hopes to get from a credit card.
Even if the credit card is already in the wallet, you can learn how to use it correctly. To do this, you need to learn the basic financial rules, and then the credit card from the enemy will be a friend.