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3 Lessons I’ve Learned From Outstanding Balance Credit Card | outstanding balance credit card

One of the most common mistakes that many people make when it comes to managing their credit cards is making the mistake of trying to pay the most outstanding balance as quickly as possible. The reality is that if you do not pay off your outstanding balance as quickly as possible you are going to incur high interest charges and large fees. If you have the ability to pay a little more each month to keep your balances low you will avoid these problems. There is a very simple way to find out just how much money you need to set aside each month to pay off your outstanding balance.

You need to write down how much you currently owe on all four credit cards. In order for this exercise to be successful you need to provide accurate information. It may be tempting to answer incorrectly, but providing an answer that is either too low or too high will yield inaccurate results. The best idea is to write down exactly how much money you owe including any additional fees and interest rate. Remember that the calculation does not include any payments you make each month that are already being applied to that balance.

The next step to take is to decide which outstanding balance needs to be paid off first. If you pay off the lowest balance then the remaining balance should be paid off last. If you choose to pay off the balance with the highest interest rate credit card first, then the subsequent payments should be made with the lower interest rate cards. Remember that you want to prioritize paying off the smallest balance first. If you allow a large balance to remain unpaid after the lowest interest rate credit card has been paid off, that account will carry a high interest rate.

A good way to manage your credit cards is to make a list of all your credit cards and the outstanding balance that they carry on each one. Write down the interest rate, the minimum monthly credit card payment and the total outstanding. This will help you calculate how much money you need to set aside each month in order to pay off the balance. You can also make a chart of your total expenses to see where your money is really going.

Next, determine how much the total amount of your bills including your minimum monthly payments (if any) are. Use this total to determine how many minimum monthly payments you will have to make. The formula to use for figuring this number is: x = amount paid or owed per month

If your outstanding credit card balance is less than the monthly payments required to pay it off, then you should probably consider paying it off immediately. However if the amount is too much for your current income, then you should probably consider looking at consolidation. There are some great deals out there when it comes to consolidating your debt so look for one with the lowest interest rates and the lowest monthly payments.

Once you know what you can afford to spend each month on paying off your credit card debt, it's time to shop around. Shop online and offline. Call lenders and ask what kind of loan they offer. Also inquire about a home equity loan. You don't necessarily need a home to consolidate, however the interest rates that come with home equity loans are generally lower than those associated with credit cards. This allows you to consolidate your debts into your house which is often tax free and you don't have to worry about making regular monthly payments.

After you have found the best deal available, you simply have to sign the loan papers and get your credit card all organized. Make sure that you make your monthly payments on time and never go over your credit card balance. If you do, you will quickly find that you are in debt once again. Take action now, before your credit card debt gets worse and it is too late to do anything about it.


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