How long will it take to pay off my credit card?

Tips to Reduce Credit Card Debts


Here are some ways to reduce the debt on your credit card:

Map out a budget

The smart way to spend these days is to ensure you follow a budget. You have to know exactly how much you are spending and on what. Make a chart of your monthly expenditures so you can figure out the areas where you are over-spending.

Reduce monthly expenses

This is the next step after chalking out a budget. If you succeed in reducing your spending, you can use the cash to pay off the debts. In this way, you can inch closer to paying it off completely. Try to cut down on eating out, going for drinks, watching movies at the theater etc. These small expenses can add up to a decent amount.

Pay more than minimum payments

Don’t stick to minimum payments on your credit card bills as it will take a long time to clear the amount. Try to pay off more than the minimum payments so the principal amount comes down quickly rather than paying in several installments where the major portion consists of interest.

Pay bills on time

When in debt, you can’t afford to add finance charges and late fees to the outstanding amount, so make sure that credit card bills are paid off on time. Sometimes, the credit card company can increase your interest rates if they notice you have a tendency to pay late. The minimum monthly payments will subsequently go up, and you will struggle to reduce the principal as most of the money will be consumed by interest.

Transfer balances

This option works for those with more than one credit card and some credit left over – you can transfer balances to the card with lower interest rates from the high interest one. Thus the minimum monthly payments are somewhat lowered and you can clear the balance faster. Try to get a new credit card if they offer a low introductory rate with 0% interest that is valid for 6 months to a year.

Needless to say, your credit rating is bound to plummet once the debt amount goes up. You can’t reduce the debt overnight, but you can get a good idea about the time frame thanks to this interactive calculator. You can also consult a finance professional who can guide you about reducing debts quickly.


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