Learn about Bank of America’s 4 strategies to pay off credit cards faster and get out of debt | International | News

Through existence Credit card People may be more inclined to spend more money and get their finances out of control. That’s why the portal Ubox He stresses that having this tool can be convenient, but it must be used conscientiously and responsibly.

There are a thousand ways to avoid maxing out or losing your card, but they all lead to changing usage habits, since the more you spend, the more debt you have. American bank Provide a list of four recommendations to prevent catastrophic scenarios.

Four habits to pay off debt sooner

The popular US bank recommends creating and implementing a good plan to keep credit card balances up to date. Likewise, it mentions four strategies that will make it easier for the user to decide what to do to pay off their debts quickly.

Step by step and one debt at a time

You must have more than one credit card This means there are more balances, so Bank of America recommends paying at least the minimum on each. After that, you’ll need to focus on paying off your current balance gradually, one card at a time.

Pay a little more with each payment

You can review your card statement frequently and be aware that if you pay the minimum balance, it will take much longer to pay off the debt. instead of, If more than the minimum is paid, the general interest payable will be less. Whatever the issuing bank is, it is its duty to show its customers the statement of account and know how interest is applied.

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Increase the number of payments

Debt consolidation means combining several higher interest balances into one with a lower interest rate; This allows the debt to be paid off faster without increasing the number of payments.

Put your expenses under a magnifying glass

The first thing is to prioritize monthly expenses, for example: food, transportation, housing, and entertainment. A credit card statement can be used as a very useful tool.

In fact, there are many credit card issuers that break down expenses by category. It is recommended to take into account what are the areas where you can reduce expenses and the remaining money can be used to pay off debts.

(Yo)

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