Back Back

3 Top Tips For Clearing Credit Card Debt

Credit cards can be a really helpful way to make ends meet and build up a good credit rating, as long as repayments are made as required… but it can also be very easy to fall into credit card debt if you’re not careful, so it’s advisable to clear your balance as soon as you can – especially when you consider that interest will be added to the amount over time.

The longer it takes to clear the balance the more you’ll end up paying in the long run and if you fail to make payments, your debts can quickly spiral out of control (1). This will have an impact on your credit score and potentially make it harder for you to be accepted for credit in the future.

If you have built up a bit of credit card debt, there are ways in which you can go about clearing it so you can get back in the black and ease your financial pressures.

Balance transfer

One way to reduce your monthly payments is to switch to a different card with a 0% balance transfer offer or perhaps one with a lower interest rate. This means that all your repayments will go towards reducing the original debt, instead of paying interest. 

Fees are typically associated with balance transfers so bear this in mind and it may be that this option is only available to you if you have a good credit score.

Pay above the minimum

It’s tempting to only make the minimum repayments but this will increase your debt over time, sometimes by thousands of pounds. Try to settle the full bill each month to avoid paying any interest, or pay off as much as possible and devise a repayment plan so you can clear the amount quickly.

Set up a direct debit

Forgetting to make a payment is a surefire way to fall into further debt, so set up a direct debit for the minimum payment at least to ensure that you don’t fall into this trap.

If you are struggling with debt at the moment because of cost of living challenges, get in touch with us today to see how we can provide credit card debt help.




Money Helper has replaced the Money Advice Service and brings together the support and services of three government-backed financial guidance providers: the Money Advice Service, the Pensions Advisory Service and Pension Wise.