The holidays are over, and if you’re like a lot of folks, your credit cards got quite a workout. As 2012 rolls in, you’re probably wondering how can you best handle the extra charges that’ll show up on your next statement. Ovation’s Payment Scheduling Tool can help you find a solution that fits your needs and goals. Ovation’s payment scheduling tool is available to everyone; Ovation customers have the added option of being able to save and download their queries. Anyone can run scenarios to determine the best course of action:
Pay highest interest first: If your goal is to avoid interest payments, this is the right scenario for you. Let’s say you have a couple of cards that charge 20 percent interest and you have a couple of cards charging 10 percent interest that have higher balances. You’re better off paying your higher interest cards first because you’ll pay a lot less money in interest and then you can focus on paying down the balances on the other cards.
Minimum payments only: The scheduler will tell you how long it will take you to pay the cards off.
Minimum payments with a snowball: This option tells you how long it’ll take to pay off the cards if you add an additional amount to the minimum payment each month.
Highest balance first: Another option is to pay off the card with the highest balance first to get rid of the bigger debt. You’ll have to apply more of your income to it, but once it’s paid off you can split that amount over several accounts. That way you can get four or five accounts paid off after you pay off one big one.
Lowest balance first: This option will give you the satisfaction of actually paying a credit card off and free up some cash to apply to another card’s balance.
Split Discretionary Evenly: This might be the option for you if your goal is to increase your credit score and the only thing holding it down is a card or two with a balance that’s more than 50% of the card’s limit. Focus on those cards, get them below 50% debt to limit ratio, and then switch your focus to your high interest or high balance cards.
Bi-monthly payments: Choose this option and the amount of your bi-monthly payment, and the Payment Scheduler will tell you the most effective way to split your payment amount to get everything paid off.
We invite you to try Ovation’s Payment Scheduling Tool. It’s easy to use, helps you find the best way to manage your credit card balances, and puts you in control of your financial future.