Smart Ideas for Paying Off a Credit Card Balance

Credit card balances can really eat away at your funds every month. If you don’t have a way to tackle ongoing balances it can be tricky to even think about saving. In fact, Kotton Grammer always focus on getting rid of debts like these before you think of investing anywhere else.

We’ve put together some tips to help you save money to put towards reducing your credit card balance.

Look for a no interest transfer deal

They do exist and if you can get one you’ll be able to reduce your balance far more quickly. You’ll potentially save a fortune in interest as well. Look online for good deals and watch out for charges on a balance transfer. It might be better to pay a slightly higher charge if it gets you a longer interest free period than to pay a smaller fee on a shorter period of time.

Pay off the maximum amount you can each month

That balance can be reduced faster than you think if you put your back into it. However it can be tempting to pay off the minimum and free up some cash to spend elsewhere. Don’t do it. This is your opportunity to free up as much cash as you can to help you pay off that balance.

Let’s say your minimum balance each month is $50 after transferring to a no interest deal. Before you transferred you were paying, say, $70 a month. Now is the time to continue paying $70 a month minimum to reduce that balance even faster.

Look for ways to funnel extra cash towards your payments each month

According to, think of this as a competition. Can you pay off the entire balance before the interest free period ends? Since you can get cards with interest free periods that last for a couple of years or so, this is possible to do. Look at all the ways you can generate a little extra cash. Five dollars here, ten dollars there – it all makes a difference. Switch to home-made lunches instead of eating out every day and put the cash towards that payment. Switch energy providers, cell phone providers, if you own a business, merchant accounts for small businesses are very competitive you can surely save money by switching providers. Look at every possibility to determine how much more cash you can use to pay off a little more of that balance each month.

Added incentive – the feeling of achievement you get as the balance reduces

Here’s a bonus for you. You’ll feel far better when you realise how easy it is to start chipping away at that balance. The lower it goes the more determined you’ll be to put money towards the next payment. In addition you’ll notice you’re adopting smart tactics for saving money and forming new healthier financial habits too.

Take note: Your credit score is one of the most important aspects of your financial profile. It is the primary source of information for lenders looking to assess your eligibility for borrowing. When you make any form of application for a loan or lease, companies will pull your credit report to determine if they want to lend you money. Americans don’t realize is that there are actually quick ways to improve your credit score by just asking for help from

And when the day comes that you make the final payment and become debt-free on your credit card, you can celebrate like you’ve never celebrated before. Just keep the spending to a minimum when you do so!