Credit cards can be overwhelming, especially if you use them for every purchase, and have multiple cards at that. The problem with a credit card is that it is not like money where it is deducted from your checking account at the point of purchase, so you know how much you have left to last you, but adds up over the course of the month, until you get your statement in the mail. Instead of it being a shock to your system, try an effective way of repayment.
Pay on Time
Seems like common sense, and it should be, but I wanted to point out first and foremost that it is important to make credit card payments on or before the due date. If you pay late, you will not only be charged a late fee and run the risk of the interest rate spiking, but if you pay 30 days late, you will take a hit to your credit report that can take up to seven years to come off.
Put a Leash on Spending
If you want to make a dent into your credit card balance, the point is to spend less than the money the money you have coming in, so that you can pay off the entire balance by the due date to avoid any upcoming interest for carrying over the balance. Start to evaluate each purchase and decide if it is really needed, and as you start to eliminate unnecessary spending you will find that the balance can be paid off a little easier and you have more leftover to save.
Track Month by Month
It can be tiresome to track purchases that occur every day or even every week, so it is a good idea that once your credit card statement is produced, to examine that, and do the same each month. Go line by line, sort out the monthly expenses compared to the unnecessary spending, and see what could have been avoided. The more pressure you put on tracking, the less you will spend, the easier the burden on your wallet will be.
Set a Repayment Plan
If you have a balance that is carrying over month after month you will notice that the less you pay, the more goes towards interest and less against the principal balance, especially if you are only making the minimum payment. Set a realistic payment plan, dividing up the balance across how many months you want it, and can get, the balance gone, with even payments made each month.
Spread Out Payments
There are some that pay bills when the bill comes in, some that pay on the due date, and those that are a little more careless and are always late. In order to have the most money on hand at a time, try spreading out the payments to each paycheck evenly, making sure they are paid by the due date at least. This way you will have roughly the same amount of money left, after bills, until the next payment each time.