Transferring the debt via a balance transfer
Some credit cards let you transfer the balance from another card.
Moving the debt to a card with low or 0% interest could help you pay off the debt faster.
Remember:
- Low or 0% interest credit cards are hard to get if you do not have a good credit rating
- Look out for fees
- Most credit card providers charge 2-3% of the amount you are transferring as a one-off fee
- Fees may mean you save less than you expect
- Avoid spending on both cards. Make sure you:
- Cut up the old credit card
- Close the account
Frequently asked questions
How do you pay off credit cards?
There are a few ways to pay off a credit card.
The first thing to do is stop using the credit card you want to pay off. This means the amount you owe stops growing, making it quicker to repay.
Options for paying off your credit card balance include:
1. Making a budget
Find out if you can make savings anywhere. This will:
- Free up money to increase your credit card repayments
- Lower the amount of interest added
2. Transfer the balance
Find a zero percent interest credit card and make regular payments to pay this off.
3. Take out a consolidation loan
Only do this if you can afford the repayments.
It can be hard to find an affordable loan if you have a bad credit history.
Get free advice if you are struggling with credit card payments and other regular bills.
Is it better to pay off a credit card in full?
It depends on what you can afford to do.
Paying off your credit card in full can save you money in interest and charges.
But this is not a good option if you would need to:
- Take out more credit, or
- Make big cutbacks on your monthly spending
It might be better for you to pay off your credit card over time if:
- You have a bad credit score
- This means new credit has higher interest rates for you
- You have to stop paying priority bills to afford paying it off at once