5 tips for paying off your credit card debt before Christmas

Five ways to pay off credit card debt prior to Christmas

If you’re UK person, you may be facing some credit card debt this holiday season. But don’t despair! With a little planning and discipline, you can pay off your credit card debt before Christmas.

A few years ago, advertising campaigns advised us to make use of our flexible friend, the credit card when shopping. This friend is, for some been out of control as well. Some of us have to take a breather and take a sip of reality.

As normality is expected to return to our country following the pandemic, here’s five helpful tips taken from Rajnish Tyagi of Acme Credit Consultant to get you back on the right track when it comes to your credit card, if it’s not in order prior to the beginning of the holiday season:

In the past, many marketing campaigns advised us to make use of our nifty friend , the credit card – to shop. The credit card is, for some it seems, gotten out of hand while others may need to take a breather and sip a glass of reality.

Normality may return to our country following the pandemic, here’s five suggestions taken from Rajnish Tyagi of Acme Credit Consultant to help you get back on the right track when it comes to your credit card, if it’s not in good order before the start of the Christmas season.

 Here are 5 tips to help you get started

1. Don’t get your head stuck into the sand when your monthly bill arrives.

  • We pay more than EUR12 billion each year with credit card.
  • The average debt of each person in Ireland in the year 2000 was EUR 46,700.
  • The majority of us pay the minimum amount at the rates that company that issue credit cards, it will require 20 years for us to repay credit card debt even if you were only paying the minimum.
  • The best deal on a card for interest, if you do not pay it off each month? AIB Bank visa click card with 9.13 APR. Online only.

2. Make sure you pay off the credit card bill as full as you can.

  • There are a myriad of options to pay off your debt instead of leaving debt with excessive interest rates.
  • You can still use credit that is free (from the moment you purchase something up until the point you receive your credit card bill , and you are granted a set number of weeks to settle).
  • The longest credit-free period? Some credit cards give you to pay for 56 days your charge (but in the event that you don’t the bill is billed significantly more).

3. If you are unable to pay off the debt on your card immediately you can transfer the balance to a different credit card company that offers 0 percentage.

  • Take advantage of the zero-interest rate for six months or more (Permanent TSB gives the first six months with 0% and Bank of Ireland offers 7 months of zero percent). One of the best are An Post Money which offers 12 months of 0% for balance transfer. It will at least give you time to consider what you will do to get rid of the balance.
  • Ideally, you should divide the debt in twelve equal installments, so that after the time your credit card will be free. In the past, paying off your summer vacation using your credit card isn’t making sense.

4. Check out the options for personal loans (unsecured loan).

The most competitive rates for loans you can find are at your credit union’s local branch with rates that low of 6.5 percent. They’re eager to lend since they have members’ surplus funds, and that’s the only way to make money of their membership.

To qualify:

  1. You must either live within the area or be employed locally by your credit union.
  2. Most lenders require you to be an active member for at least one month prior to applying for the loan
  3. In general, for your first loan, you will need to pay between 2.5 percent to 25 percent of the amount you would like to take out … e.g. If you are looking to borrow EUR4 then you must deposit EUR100 to an existing account.
  • Bank Of Ireland overdraft rate of 16.2 percent in addition to AIB Bank of 12.38% (loans that are up to €9,999 their rate for overdraft is 11.85 percent) are costly.

5. If the amount of your loan payments exceeds your earnings, consolidate as much as you can. If you’re allowed to, make it a single time.

  • Your income is the most important asset you have, and you must guard it always – create your own budget and make sure that you are living within your means, i.e. your income exceeds your expenditure.
  • There may be an equity in your house or property that you can let go to pay off all your debts as long as you have an income and your lender is willing to accept.
  • Keep in mind that mortgage interest rates, regardless of whether they are increasing, are among the least expensive loans. If you borrow less than 80 percent of the worth of your house is the case, you can get low rate of interest… Certain fixed rates are extremely appealing and are 2.05 percent fixed for four years, and some lenders offer cash back against the legal expenses.
  • It is also possible to get additional money to invest (remember that if you’re hoping for growth you need to take a risk, but using your house as an investment is as a risky option considering what has transpired over the past fifteen years). A small percentage of lenders do this, and only in extreme situations. The release of funds in order to settle debts, like I stated, shouldn’t be undertaken, especially in the case of reasons of lifestyle.

By following these tips, you can get your debt under control and have a stress-free Christmas season! If you are looking for debt management companies in the UK, Acme credit consultant is a good option for you.

Call us for debt management at +44 7779648018

By Olivia Bradley

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