Ok not quite instantly!
Thinking about paying down the credit cards? To many even the thought is overwhelming at first, but with planning and discipline it can be done, often more easily than anticipated. While it may not be quite as easy as applying for instant approval credit card, it is by no means impossible
One of the biggest problems with paying off substantial amounts of debt is that initially it can seem that the debts are insurmountable. It appears that the repayments are not even making a dint, there is no sense of accomplishment or achievement and many give in and go back to making the dreaded minimum monthly repayments. The way to get this momentum and impression of movement is to make sure that the lowest amounts are paid off first. This method is known by many in the US as the snowball method as contoversially recommended by “debt guru” Dave Ramsey. The method focuses on the psychology of paying off the credit cards rather than the math principals which would suggest that paying off the cards or loans which have the higher interest rate first would be more effective. This method means that the consumer payong off the credit cards sees the results early on and applies payments that were being made to cards with low balances are then applied to the card with the next lowest balance and a pattern of self discipline, control and accomplishment are gained in the process.
The math focussed approach instead of looking at the lowest balances it looks at the highest interest rate. By paying off the credit cards with the highest interest ratefirst the lowest possible amount of money is spent paying interest that accrues during the time. This means of course that the money goes in paying off the capital, which will always involve the least time and money of all debt repayment techniques.
The way to pay out the credit cards instantly is to apply for a balance transfer credit card. These have often been used to when the existing interest rate is high. Of course there is an instant reprieve if a 0% interest balance transfer is approved however the debt does not magically vanish. To get the most from a balance transfer credit card, the consumer should aim to repay the balance in full during the introductory period, so divide the amount outstanding by the introductory term, work out your monthly repayments and stick to it.
