Wednesday, 4 March 2015

How to pay off your debt faster

Paying off or defaulting on your debts plays a major role in shaping your CIBIL report. One late payment on your debts could affect your credit score in a very negative way. So what does one need to pay off these debts faster in order to maintain your credit score at a good score?

There are two main ways to get rid of debt faster:

Don’t let your debts increase: 

The first and foremost thing you could do is to see to it that you don’t let your debts increase. Pay off the installments on time; don’t miss any installments as that could affect your credit score negatively. As the debts would increase, it would become that much harder to salvage your credit score.

 credit score

Try to reduce the interest rates:

Second thing to take care of is, don’t let the interests on your debts pile up –that would affect your credit score much more. If you are not able to pay off your debts, talk to the banks to give you reduction in the interest rates. You may not be aware of this but some banks do give recessions like these.
You can also apply with the same banks for a balance transfer or debt consolidations. In Balance Transfer cards, banks let you shift off your balance to a zero or low interest cards so that you can pay off your debts faster without the worry of the interest piling on. While in debt consolidation, you can consolidate your multiple debts by taking one debt to pay it all off. This saves you time, money and also the efforts to maintain those multiple debts.
These are some of the ways you could pay off your debts faster and save your credit score from dropping drastically.

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