Credit card debt can become a problem if it's not managed in time. Bank of America, through the Better Money Habits portal, offers a clear guide to pay it off faster.
The institution provides advice ranging from how to prioritize payments to when to use a balance transfer. Thanks to this notice, the bank can help you regain financial control step by step.
How to pay off your card sooner according to Bank of America
The first step is to develop a realistic payment plan and stick to it. Bank of America recommends writing down all outstanding debts and assigning them to a fixed strategy. This way, you'll have everything under control and you'll always know where your money is going, seeing it all at once.
A useful technique is to pay more than the minimum required: even a little more can significantly reduce the time and interest accrued. To keep you motivated, Bank of America recommends using tools that show your progress and let you see how the debt decreases month by month.
Bank of America points out that transferring balances to a card with a lower interest rate can speed up repayment. This strategy allows you to reduce costs if the balance transfer fees are lower than the interest you save. In addition, consolidating several debts into a single payment avoids complications.
This is how you can improve your credit history
Bank of America suggests evaluating two methods to prioritize payments. First, there's the "snowball" method, which consists of paying off the smallest debt first to gain quick motivation. On the other hand, the "avalanche" method is to pay the debt with the highest interest rate to save more money in the long run.
Paying more than the minimum and reducing credit usage also provide benefits to your credit score. Keeping the ratio below 30% strengthens your profile for future loans. Although closing old cards can harm your history, some Bank of America tools allow visual control of usage to avoid this problem.
However, if the situation becomes complicated, Bank of America suggests consulting with "credit counseling" agencies. These advisors can create a personalized plan, negotiate with creditors, and consolidate payments into a single monthly installment, often with reduced interest.