Debt-free: How to pay off your credit card debt faster

Pay your dues, get rid of the blues
Not only does credit card debt way heavy on the shoulders, but it’s also stressful, nerve-wracking and a pain to get rid of.
By Lubna Hamdan
Mon 10 Apr 2017 09:12 AM

A man in debt is so far a slave. American lecturer Ralph Waldo Emerson had a point when he made that statement.

Not only does credit card debt way heavy on the shoulders, but it’s also stressful, nerve-wracking and a pain to get rid of. So we did what anyone with debt would do: find an easy way out (sort of). Here are six ways you can get rid of your debt faster:

1. Pay more than minimum payment

It’s painful. We know. But paying more than the minimum monthly payment amount is a sure way of getting rid of your credit card debt faster. Tight your budget in subtle ways (such as decreasing your nights out) and put that extra money towards a higher payment plan.

2. Freelance for extra cash

Or as millennials like to call it, ‘a side hustle.’ Extra cash is always handy when you’re trying to pay off debts. And freelance jobs can be a temporary solution. Websites such as Utalenta.com and Nabbesh.com offer freelancers a platform to finds jobs across the region. Just make sure to spend the extra cash on your loans.

3. Negotiate lower interest rates

If you haven’t tried to negotiate for lower interest rates with your credit card issuer, you might want to give it a try. According to experts, you’re more likely to succeed in getting a reduction if you have a good history of paying bills on time.

4. Consider a balance transfer

If your credit card firm refuses to lower interest rates, you might want to consider transferring your balance and moving your debts of high-interest cards to lower interest cards. However, experts recommend enquiring about transfer fees, as some credit cards have high ones.

5. Use your found money

We’re talking about those bonuses or annual raises you might (or might not) be getting at work. Make it a rule to use any found money to pay off your debts. It can even be an inheritance. We think it’s easier to let go of a bonus than a chunk of our salary every month.

6. Live on a budget (for a while)

This is a no-brainer, but most of us don’t make the effort to change up our lifestyle to pay off debt. Tightening your budget, even in the slightest ways, can go a long way when it comes to getting rid of debt. Decreasing the times you eat out per week alone can save you a good amount of money that can then go to paying off your debt (or prevent you from accumulating it).

For all the latest business news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.

Last Updated: Thu 13 Apr 2017 06:57 PM GST

Subscribe to our Newsletter

Subscribe to Arabian Business' newsletter to receive the latest breaking news and business stories in Dubai,the UAE and the GCC straight to your inbox.