Simple Strategies for Getting Out of Debt
See How We Make Setting Out of Credit Card Debt Easier for You!
Getting out of credit card debt and managing debt takes persistence and dedication
but once you rein in your debt, you'll be glad you did, and you'll be much better
off financially and emotionally.
Here are a few ways to get you started toward getting out of credit card debt:
- Pay more than the minimum payment each month. Did you know the minimum payment amount
is usually 2 to 3% of your balance? On a $2,500 credit card balance with a 2 percent
minimum payment, you would pay only $50 toward decreasing that debt and the majority
would be applied towards interest and not principal. Pay a little more than the
minimum payment required each month and you'll be surprised at how fast that credit
card balance decreases.
- Call the credit card companies and cancel all of your credit cards except for the
one that gives you the lowest interest rate. Don't use that credit card unless absolutely
necessary.
- Gather all of your most recent credit card statements, sit down with a pencil and
paper, and write down the balance of each debt and the interest rate charged. Beginning
with the lowest interest rate debt(s), pay only the minimum amount due.
- On your highest interest rate debt, pay the minimum payment plus any additional
amount you can afford. Once this debt is paid off, go to your next highest interest
rate debt and apply the money you were paying toward the first debt towards the
second debt. Also add the minimum you were paying on the second debt and keep paying
the minimum due on the others.
Continue to do this until all of your debts are paid off. This may take a few years,
but don’t get discouraged. The feeling you get from being debt-free is priceless!
Your checklist:
- Pay more than the minimum due.
- Cancel your credit cards.
- Don’t get discouraged.
- Stay motivated!
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