Home>Blog>Pay Down Your Debit or Consolidate? You Decide.

Pay Down Your Debit or Consolidate? You Decide.

If you have credit card debt, now’s the time to get rid of it. Should you pay it down or consolidate and pay it at a lower rate? The information in this blog may help you decide what’s best for you:

Most financial experts advise paying down your debt because it puts you in a stronger financial position overall. Here are a few ways you can make this happen:

  • Pay more than the minimum payment required. You’ll pay down the balance faster and avoid interest charges. Try to double your payment if possible. You can either do this in one payment each month or pay the minimum payment twice a month. But, the key here is to pay more than the minimum.
  • Focus on your largest interest rate or smallest balance first. Most people focus on the smallest balance so they can feel a sense of accomplishment. Take the amount you paid on this card and pay that amount to the next highest balance you have and so on. If your balances are similar, focus on the one with the highest rate first – it’ll save you the most over time.
  • Redefine your spending habits. You have to change your mindset if you want to pay off your debt. If you can’t pay for it in cash or pay it off at the end of the month, don’t buy it. Your goal is repaying debt, so don’t add to it each month.

Another way to eliminate debt is to consolidate and transfer your balances to a lower rate card.

What are the benefits?
You’ll make one payment at a lower rate than what you may be paying over time. Meaning you can pay down your balance from a higher rate card to a credit card offering a lower rate.

What’s the downside? To avoid new debt, you need to cut up your other cards (or don’t use them or focus on new spending habits. Just be cautious about what you’re doing when consolidating.

Learn more about how to consolidate or pay down your debt. Consider transferring a high rate credit card balance to one of the Citizens Trust Bank credit cards today. Visit one of our Financial Center locations or visit us online today. Transfer Now and Save.

*A variable 8.50% APR is for the Citizens Trust Bank Prestige Elite VISA credit card only. A variable 10.50% APR is for the Citizens Trust Bank ATL VISA credit card only. APR is calculated by using the Prime Rate as published in the “Money Rates” section of the Wall Street Journal. As of 12/15/2017, the Prime Rate was 4.50%. A Penalty APR of 21.00% may be applied to your account if you make a late payment. If your APR is increased, for this reason, the Penalty APR will apply until you make six consecutive minimum payments when due. There are no annual, membership, foreign transaction or balance transfer fees associated with the Citizens Trust Bank VISA Prestige Elite, or CLASSIC ATL credit card products. Penalty Fees may be applied (Up to $30) for Late Payments and Over-the-credit limits. The penalty fee for Returned Payments (up to $32) may be applied.

2018-07-26T17:29:54+00:00January 23|Blog|

One Comment

  1. Tasha Boyd January 24 at 2:49 pm - Reply

    Hello, thanks for the information.

Leave A Comment