Asked by Orlando  |  Submitted April 16, 2018

What is the best way to pay off credit card debt quickly to save money?

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  Answers  |  1

April 17, 2018

So depending on your situation here is what you need to know. Credit Utilization is 30% of your credit score. If you need to improve your credit score for optimal performance get it down to under 10%. That will help boost your score free no need for credit repair companies. As far as paying off the credit card depends on your situation.

Situation 1: If you have money put aside pay it off.
Situation 2: If you have high credit bills and steady income. depending on your credit score look to consolidate with a personal loan.
Situation 3: If you have a poor credit score fixing this can help lower your bills across many forms on insurance, interest payments etc.
Situation 4: Look over your bills to see where you can cut to apply to the outstanding debt
Situation 5: There is a lot of simple cash back apps and savings companies you can use to cut costs as well to consolidate debt fast.

All depends on your need and how fast you need it. Knowing your situation can give into a better analysis for faster results. There is a lot of options though.

Personal loan is one the easiest ways for one simple monthly payment. This can save you from high interest credit card rates too. Be careful when applying. A lot of companies will pull your credit score to shop out rates. So shop it out with a soft pull first this will save your credit score so your not punished for shopping it out. Trust me here it happened to me when getting my first car. Each time they shop your score out and do a hard pull this can lower your credit score (more interest for financing company the lower your score with interest rates) and make it more difficult to get a loan if you apply too many times or have a lot of hard inquires on record. Good news they fall off after 2 years. If you call in though could get it off after minimum 1 year. Another method could be a good will deletion by the creditor if they are willing and understanding.

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