Keeping up with your payments will help you reduce your debt faster. The more money you owe, the higher interest you will end up paying. If you can, you want to keep up with repayments on your credit card and/or loans, while making extra repayments when you can afford it. This will eliminate your debt faster and save you money on the interest rate. If you are continually finding yourself unable to meet payments, it could be time to seek help. Paying off debt is not only stressful but also often overlooked, when in fact it should be prioritised.
Paying off a credit card
- Try to make sure you pay off the entire amount owing on your credit card each month, in order to take advantage of your interest free period. If you only make the minimum payment, you will end up paying more interest.
Find out how you might be able to pay off your credit card faster.
Have a go at using this free credit card calculator.
Paying off a home loan
- Pay off your home loan faster by finding an offer with a lower interest rate. Research all your options and talk to your lender to ensure you are paying a fair price. Always compare fees and charges. If possible, make larger or more regular repayments on your home loan, unless you have an interest only loan.
Find out how you might be able to pay off your mortgage faster here.
Have a go at using this free mortgage calculator.