We all know that debt management is a process that involves planning, structuring, and discipline. You need to plan a way out to clear and manage your debts. Rolling over high credit and not being able to clear monthly dues has become a common problem with cardholders. Most cardholders max out the credit limit and spend recklessly, finding themselves deep in debt.

Credit cards offer an instant solution to cardholders to manage their expenses and purchases. The banks offer a wide range of credit cards to address the different needs of their customers. However, it is important that cardholders use the card smartly.

Here are six ways of debt management.

The balance transfer method
It is one of the ways to clear off credit card dues. The balance transfer method converts outstanding money into a low-cost EMI. You can shift multiple credit card dues on one card and freshen up a credit-free period of 90 days to repay the outstanding dues.

Debt snowball
This method helps you clear off outstanding debts and eases the load of repayment. You can clear smaller dues first before moving onto the higher ones. This method builds motivation for repayment of debts.

The debt settlement option
Debt management is a planned process. Clearing dues with debt settlement is another option. This method is more suited for people who are willing to make large one-time payments and for people who are due on credit card debts. It is a negotiation accepted by the creditors to accept part payment as the final repayment of dues.

Debt avalanche method
This is one of the most common and known strategies for clearing and paying off credit card dues. All you must do is clear minimum outstanding dues on all existing credit cards and transfer extra money in the account with the highest rate of interest. Like this, you can keep clearing dues with the highest interest rates and eliminate the debt trap.

Clearing debts with personal loans
Paying off credit card debts with a low-rate personal loan is another approach to repaying credit card debt. This will help in improving your credit score as you consolidate your credit card debt with a personal loan. This method can manage your debts and mitigate the overload of repayment, saving you some money.

Pay more than the minimum monthly installment
Paying more than the minimum monthly installment can help in paying off credit card dues. Minimum monthly payments are set low, so you can repay debts. The more you pay every month, the faster you’ll pay off outstanding dues.

Debt management plan for credit counseling agencies
There is a plan for debt management that combines all the payments from various credit cards into one. The credit counseling agencies offer a debt management plan that gives you a defined way to clear your debts by cutting the interest rates in half and combining all the payments from various credit cards into one single payment. A debt management plan can only come as a temporary resort for you that too in case of lower debt. This option might not be viable if the debt is very big and overwhelming.

These ways to manage your credit card debts can prove to be beneficial for you in other ways. Timely repayment of outstanding dues will improve your credit score as well. Moreover, this will make you eligible for loans with favorable terms. Ensuring that you maintain to income to debt ratio can help you manage your credit card debt and improve your credit score.