High Interest Credit Card: 3 Ways to Pay Off Your Debt Quickly

Credit card debt can be crippling. Aside from the obvious negative effects it has on your credit score, it can also give you the feeling that you are constantly walking in a storm. Credit card interest rates are high because they are designed to dissuade users from carrying a balance on their cards. However, the disadvantage is that once you find yourself in debt, it becomes more and more difficult to repay. It requires discipline and patience.

Here are some different strategies that you can use to mitigate the effects of these high interest rates, so that you will be able to pay off your credit card debt once and for all.


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Debt consolidation on a credit card is one of the most common ways to start paying off your credit card debt in a more organized and convenient way. Unlike reward credit cards that are designed to give you points when you spend money, balance transfer credit cards offer a promotional period (usually less than a year), during which they charge you a reduced interest rate on the balances you transfer from other credit cards. For example, they will charge you 0% on balance transfers for the first 12 months.

There are, however, some things to know when you make a balance transfer. First, you must plan ahead to make sure that you will be able to repay your transferred debt before the end of the promotional period. If you are still in debt and the promotion period ends, then you are going to be back paying a high interest rate on what you have transferred, only it’s going to be on a new credit card. Secondly, you usually have to pay a fee for the amount transferred. These fees are typically calculated as a percentage of the total amount transferred. So, if you plan to move your debt to a card, it is best to do it in as few transactions as possible to avoid paying multiple transaction fees. Finally, even if the promotional period offering a reduced interest rate can last from six to 12 months, the real window of time to transfer your debt is usually 90 days. The promotional period of no matter how many months begins when you make the transfer.

Here are some popular low interest rate and balance transfer credit cards that can help you repay your debt faster:

Line of credit or personal loan

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Although the previous board has spoken of “debt consolidation,” it only targets the consolidation of all your debts on a credit card that offers a lower interest rate. However, there are other ways to consolidate or “pool” your debts in one place so they are easier to manage.

Another way to consolidate debt is to get a line of credit from the bank. In the same way that a credit card has a limit that you can not exceed, but that becomes reusable when paid, a line of credit offers you the same luxury. Apply once, then borrow money up to your credit limit and pay interest only on the amount you use. Personal lines of credit often offer you lower interest rates than credit cards, so they are a very viable option for those who are burdened by debt.

The bank also offers personal loans. These differ from a personal line of credit because your regular payments are a combination of the principal amount of loans and interest charges. Another big difference is that the money is not “reusable” as it is with a line of credit. Once you spend it, he is gone. Depending on your borrowing needs, one of these options can be a great alternative to pay the high interest charges that come with a credit card.

Loans between individuals

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Although a bank’s personal loans are a great option for those who can get them, financial institutions tend to be risk averse and can not accept everyone who comes to ask for one. If this is your situation, then borrowing via a loan platform between individuals may be the way to go. These are online loan platforms designed to connect borrowers with lenders. What makes it so popular is the fact that lenders set their preferential interest rates so that both parties are satisfied. Even though financial institutions have their personal interests invested, their interest rates offered are unlikely to be the most affordable option available to the borrower. Loan platforms such as “Grow” primarily serve as an intermediary, providing a forum for lenders and borrowers to meet. This makes interest rates available much more attractive.