All over the world, people are wrestling with debt and increased living costs. Buying groceries, paying rent, and purchasing necessary items for your family have all increased in price while at the same time wages have either decreased or stayed the same over many years. This makes raising a family and having everything that you need without credit cards or debt quite a challenge. Many families are so stifled by debt that they not only live paycheck to paycheck but they are also struggling to make debt payments on time. This article will focus on sharing a few ways to pay off debt in the UK.
- Personal loan. If you have a credit card with a high interest rate, you should consider paying it off with a personal loan. Be sure to apply for a personal loan that has a lower interest rate than your current credit card rate otherwise you will be losing money. By paying off the debt with a lower interest personal loan, you will save money by paying less interest over the life of the loan. You can do this easily by applying online. Often times you can get an instant answer and work on paying off your high interest loan or credit card right away. Check out https://www.paydaypixie.co.uk for more information and to begin saving money today!
- Balance Transfer. Many credit card companies will entice you to apply for their card because of their great balance transfer offers. Many offer a 0% APR intro rate for up to 18 months. With this great rate comes a 3-5% transfer fee that occurs one time. While this fee may cost you a few hundred dollars depending on your balance, you will save more money over time by avoiding the high interest on your credit card. If you do choose to do a balance transfer, be sure to close your credit card after the balance transfer has been completed. Otherwise, you might be enticed to purchase items on your paid off credit card which would leave you in even more debt.
- Pay more than your minimum payment. Try to pay more than your monthly minimum payment as this could be reported on your credit score. Whether you pay your minimum payment or a bigger payment, your credit score will be affected. In addition, if you pay over your monthly payment, you will likely pay off your credit quicker as long as you don’t continue to make purchases with it.
Paying off your debt can be done. All it takes is some time, patience, and responsible budgeting. The key is to lower your interest rate and pay more than your minimum payment. Try to use any extra money towards paying off your debt. By doing so you will pay your debt off quickly and pay less interest over time. By being diligent with your debt payoff plan and following these tips, you will be able to pay off your debts and live a debtfree life in no time at all.