If you’re looking for ways to help pay down credit card debt you’re not alone. So many people are in a credit crunch today that it’s become a national crisis. People are cutting up credit cards, freezing them in blocks of ice so they’re not tempted to purchase things and closing accounts altogether and going with cash. Unfortunately for some of us, living on a cash basis isn’t possible with our income and expenses. That makes it even more important to find ways to help pay down credit card debt and keep it down.
One of the best ways to help pay down credit card debt is to choose the credit cards that cost you the most interest and fees and pay it down as quickly as possible. Forget the minimum payment and pay as much as you possibly can on that card while paying only the minimum on your other cards. This process lets your worst debt disappeared the fastest. Once you’ve got that credit card debt paid off, which will happen faster than you probably think thanks to you paying off principal each time and not just interest, then you take what you’ve been paying on that card every month and set it aside.
Now that amount goes on your next highest credit card. So if you’ve been paying $100 a month on a credit card and you paid it off, now add that $100 a month to the minimum payment you’ve been making on your next biggest debt. That will help that card debt pay down very quickly and you repeat the process until you’re out of debt.
Say you paid $100 a month on your highest interest credit card and you paid it off. It added that $100 a month to the minimum payment you were making on your next highest card which meant you were paying $150 a month on that card until you paid it off. Now take that $150 a month and add it to the minimum payment your argument in on your next highest interest credit card.
This process can seem slowest right at first when you’re paying on that big card. But once you start making progress the momentum builds because you’re paying more and more on the principle of each debt. You’ll be surprised how quickly you’ll be able to pay off those last lingering credit cards once you’ve made it through the first one or two.
This is one of the best ways to help pay down credit card debt. It is important that you don’t accumulate new debt while you’re doing it. Sometimes this is impossible, so if it happens just forgive yourself and stick with your plan, and you will get to the point where you’re paying the cards off.
Just be sure, if at all possible, that you use your lowest interest credit card for any new debt that you cannot help. And when it comes time to pay that card off use everything you were paying on all the other cards plus the minimum. This way your monthly payment never goes out but you beat down your debt.
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- Ways To Get Out Of Debt – Part 2
- How to Get Out of Credit Card Debt if You Do Not Own a Home
Tags: Credit Card Debt, Credit Help, Debt Collection, Debt Help, Debt Relief, debt tips, Personal Finance, Reduce Debt, shopping
This entry was posted on Monday, February 22nd, 2010 at 5:11 pm. You can follow any responses to this entry through the Post RSS Feed.
This is an interesting process that I think I may try. Thanks for the pointers.
once you’ve finished paying the debts of a credit card account canceled immediately. Leave credit cards at home to avoid the temptation to use them. Never pay the debts of a credit card with another, as it has some disadvantages.