How To Lower Monthly Credit Card Payments
By Norman G. —
Published April 24, 2018
Credit cards are one of the most frequently used financial instruments in our daily lives. The accumulation of credit card debt is one of the most common problems for a majority of Americans. Studies have revealed that the average American’s credit card debt goes over $4000.The situation is aggravated when a balance is carried from one month to another. Often, you may find yourselves making larger credit card payments than is actually necessary.Credit card debts can also affect your credit score. A bad credit score can pose a challenge in cases where you need to borrow loans. In addition, it can cost plenty in terms of interest.This is why it is important to plan strategies that help lower your monthly credit card payments and avoid the accumulation of debt.Decrease the use of your credit cardOne of the best ways to reduce your monthly credit card payments is to reduce the use of credit cards. Avoid using your credit card for purchases that tend to cost a huge amount. Instead use credit cards only where it is absolutely necessary. This way you can avoid unnecessary costs from building up on your credit card.Make large credit card payments at presentFree up some cash to make some significant payments on your credit card. This way you can reduce the credit card payments that are to be made in the future. Make sure that while making large payments, you do not accumulate any additional charges as this can undo your progress. Larger payments not only reduce the overall balance, but they also help to decrease the accrued interest.Ask for lower credit ratesTry negotiating lower credit card rates with your credit card company. In most cases, this can be done by adjusting the annual percentage rate or APR. If you have always been up to date with your payments, chances are high that your credit card company will agree to such a demand. Lower interest rates mean lower monthly payments.Transfer your existing balanceSome credit card companies offer a zero percent APR for a specific time period, known as the introductory period. An effective way to reduce your monthly payments is to transfer the existing balance on one of your credit cards to a new credit card with a zero percent APR. You can easily pay your balance without worrying about interest.Better credit scoreIf you have a great credit score, you will be eligible for better interest rates. This is instrumental in lowering your monthly credit card payments. A high credit score is important in order to help you negotiate better rates for your credit card. In addition, a good credit score helps you qualify for other credit cards.Pay off your balance on timeThe best way to reduce monthly payments is to pay off your balance each month. This eliminates interest and keeps the accrued debt to a low.Devise a payment strategyDetermine the amount of money you have to pay each month and tighten your budget so that you can set aside some money to help you with your monthly credit card payments.Calculate the amount you can set aside each month and automate your payments so that it gets automatically deducted from your income.Pay off your credit card bills as early as possiblePrompt payments ensure that you save better and will help in lowering the minimum payments on your credit card. The earlier the minimum is paid, the sooner it will reflect on your account. The minimum payment for the succeeding month will be much lower.