A balance transfer is when you use a credit card to pay off the debt owing on a different card. Balance transfers can risk more debt, but there are some advised methods on how to pay off your debt.
Currently, balance transfers can’t be initiated with your Neo credit card.
Tips on paying off your debt
There are two key suggestions on how to pay off your debt. These are the debt snowball and debt avalanche methods.
Depending on how you wish to pay off your debt, you can use one of these suggested methods.
Debt snowball method
This method focuses on balances and paying off the smallest debt first.
- Begin by listing your debts and arranging them from smallest to largest
- Consider how much more than the minimum payment you can contribute to pay off your smallest debt
- Once your smallest debt is paid off, move onto the next one on the list
Debt avalanche method
This method focuses on interest rates and paying off the debt with the highest interest rate first.
- Begin by listing your debts from highest to lowest interest rate
- Consider how much more than the minimum payment you can contribute to pay off your debt with the highest interest rate
- Once your debt with the highest interest rate is paid off, move onto the next one on the list
