Did you know you can pay off your credit card debt in half the time without changing a thing? Here are suggestions for helping to pay off your credit card debt so that you can boost your credit score.
Figure out your budget
Having a budget can help prevent large amounts of credit card debt. When thinking about budgeting, you might consider the 50/30/20 rule to help you avoid lots of debt. This rule states that you should spend 50% of your monthly income on necessities, 30% on your wants and 20% on savings.
Pick a debt pay-off strategy
There are multiple ways to go about eliminating your debt but two of the most popular methods are the avalanche method and the snowball method.
This method suggests that you line up everything you owe in order of how much interest they have and eliminate them from top to bottom. This eliminates the debt that will cost you the most in the long run first. Then you move to the next one.
This method suggests that you line up your expenses from smallest to largest and pay them off in that order. This method is much more empowering, especially for those who may be really overwhelmed by their debt, because you see real progress when you can cross a debt off your list.
Stop using credit cards
It’s easy to slip into continuing to use credit cards. However, while you are trying to reduce your credit card debt, try to avoid using the cards you are trying to pay off. Your ratio of debt balance to available credit is a huge factor in determining your credit score.
Set up automatic payments
Most credit cards allow you to set up automatic payments every month. This eliminates the need to remember to make even minimum payments. You won’t have to worry about missing a credit card payment and seeing your credit score go down as a result.
Utilize the resources you have
If your employer offers DailyPay, the DailyPay Balance™ can be a great tool to help you eliminate credit card debt and boost your credit score. The pay balance gives you access to your earned but unpaid pay. With DailyPay’s PAY feature, you can transfer this balance into your checking account, making it easy to pay a credit card payment, even if the due date is in between pay periods. One of our DailyPay users recalled a time when she used DailyPay to pay her credit card bill before it was due, and she boosted her credit score by 30 points!