According to a recent report, Canadians currently have an average credit card balance of $2,121. That’s a record high for the country. This credit card debt is also known as revolving debt. It’s called this because many Canadians maintain this credit debt on a monthly basis. They’ll make payments on it each month, but unless they’re aggressive when it comes to paying it down, revolving credit debt won’t go away for a long time.
Do you have revolving credit card debt that just won’t seem to go away? If so, you should take the time to learn how to manage debt better than you are now. It’ll help you bring your revolving credit balance down much faster than you’ll be able to do it otherwise.
Here’s a helpful guide on how to manage revolving debt more effectively from now on.
Make More Than Minimum Monthly Payments
If you have revolving debt with a credit card company, they’ll likely tell you that you need to make a minimum monthly payment every 30 days. This minimum monthly payment might actually be very manageable for you.
But here’s the problem: This minimum monthly payment isn’t going to make much of a dent in your revolving debt at all. As a result, it might take you decades to pay off your revolving credit debt completely.
With this in mind, you should consider making higher payments on revolving debt each month even if it isn’t required. This will help you make some real progress as far as paying down your debt is concerned.
In some instances, paying as little as just $25 or $50 extra could make it possible to eliminate revolving credit debt years earlier than you may have anticipated.
Try Negotiating a Lower Interest Rate
If you have a credit card with an interest rate in the teens, you’re probably not going to be able to get it any lower. This will already be considered a “low” interest rate in the credit card industry.
But unfortunately, it isn’t uncommon for some people to have credit cards with interest rates that are over the 20% mark. Interest rates like this can be real killers for those with revolving debt.
It’ll be close to impossible for you to pay off revolving credit debt like this in a reasonable amount of time. It’s why you should contact your credit card company and attempt to negotiate a lower interest rate on your revolving debt. The worst they can do is say no.
Transfer Balances on High-Interest Credit Cards
Is your credit score in decent shape in spite of the revolving debt you have? You might want to try to use this to your advantage.
You may have the opportunity to qualify for a credit card with an introductory interest rate of 0%. You could benefit from taking this card and transferring balances from high-interest credit cards onto it.
By doing this, you’ll be able to put a major dent in your revolving credit debt within a matter of just months since you won’t get charged any interest on it. Just be sure to put a plan into place for paying your revolving debt down before your introductory interest rate expires.
Ask a Credit Card Company to Settle a Debt
If you’ve spent years or maybe even more than a decade trying to pay down revolving debt and come up empty, you may need to take drastic measures while trying to manage it. You might want to reach out to your credit card company and ask them if they’d be willing to settle the debt you owe.
When you settle a debt, a credit card company will agree to cancel your revolving credit debt if you make a lump sum payment that’s equivalent to a portion of your debt. It’s a good option for those who have a nice chunk of change sitting in their bank accounts.
Many credit card companies won’t settle revolving debt if you’ve been making your monthly payments on time. But if they suspect you might be in danger of defaulting on revolving credit debt, they’ll often be willing to entertain a settlement offer.
Take Out a Personal Loan to Pay Off Revolving Debt
Have you had it up to here with revolving debt? The most effective way to get rid of it once and for all might be by taking out a personal loan and using it to pay off all this debt.
A lender like Tekaloan can help you get your hands on online loans when you visit tekaloan.com. You can have these fast loans deposited into your bank account within just days so that you can stop revolving credit debt from taking such a huge financial toll on you.
Installment loans have become one of the best ways for people with revolving credit debt to get some much-needed relief. You won’t have to worry about credit card debt suffocating you each month after you take out a loan from Teka loan.
Let Us Put an End to Your Revolving Debt Problem
Do you cringe when you open up your credit card statement each month and see your revolving credit balance? This is no way to live your life.
Tekaloan has online loans available for those who would like to eliminate revolving debt from their lives for good. You’ll be pleasantly surprised to see how simple it can be to apply for installment loans and get approved for them.
Contact us if you have any questions or concerns about the fast loans that we have to offer or go ahead and apply for one today.