Finance

Use Your End of the Year Bonus on Paying Down Your Credit Cards!

If you’re looking for fast ways of paying down your , don’t worry — you are completely in good company! You just need to make sure that you look into all of your options, and we do mean all of your options. For example, you might have just received a year end bonus from your job. Does this mean that you should run out and immediately spend it on the latest and greatest fashions or even the latest cell phone? Definitely not. You will need to think about how to best use the money to make your life easier. For example, you can pay down your credit card debt quickly with your bonus, as long as you follow a few simple steps:

First and foremost, you will want to make sure that your credit card debts are actually current. This will make it a lot easier to pay money towards the principal of the credit card, rather than just the interest. If you can pay early in your cycle, you will actually save a lot of money on interest as well. This is because when you pay early you are shaving off days where interest is calculated. After all, you can’t really calculate interest on a day where there is no balance to be had, right?

From there, you will also need to make sure that you send in the payment as soon as possible. This is where it helps to have your bank account already connected to your credit card company’s payment site. If you have a debit card, then you can make a one time payment. You don’t want to go with a money order, because you will be at the mercy of the post office instead of actually having things together.

As a side note, you might want to think about going with automatic payments through a checking account or even off your debit card. This will help you stay on track even after you use your bonus to pay down your credit card bills. This will also give you the good credit history to ask for a reduction on your interest rate, or even to ask for an increase on your rate limit. If you show the company that you can handle more responsibility, then you will definitely get anything that you request.

Finally, you need to make sure that you keep the momentum going. Surely there are things that you can do to bring in extra money. For most people, this means either making more money, or cutting back on expenses and using the savings towards your credit card payments. One thing that a lot of people do is switch down their cable subscription, since most of us are far too busy to actually sit down and watch television.

Overall, taking care of your credit card payments is something that you will need to make a priority if you really want to have the good financial history necessary to move forward in life. With the tips in this guide, you shouldn’t have a problem working towards a brighter credit future!