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11.18.2008

Tackling Credit Card Debt

Here's a tried and true method for dealing with credit card debt that many have had success with. I thought I'd review it here for anyone who hasn't heard of this method or tried it themselves yet:

1) Pay the minimum on all your cards except for the one with the highest interest; on that one pay as much as you can.

2) Once that highest interest card is paid off, take that money that you were paying on it and apply it to your card with the next highest rate.

3) Continue on down until all the cards are paid.

This is assuming, of course, that you're not charging more on the cards than you're paying... if you're not, then it's an organized, sure fire way of definitely paying them all off.
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4 comments:

Jessica said...

I have heard of this before but it's a great tip! It seems like common sense but so many people don't realize that it's such a great thing to do! Love your blog! You have some really great tips! Thanks!

JEANNE said...

Thanks :-)

kalea_kane said...

My husband and I did this last year, and were debt free by April. Well I should say unsecured debt free. We do have our home loan. I can't remember where I first read it, but it was valuable. :)

Glad you shared it too!

Len Lovering said...

Credit cards are very expensive.
Try using this formula.
First open a personal line of credit, most will be prime , plus a couple of percentage points or less.
Use a credit card that has rewards such as airmiles.
Pay the credit card off in full at the end of the month with the line of credit.
Make the highest payment you can on the line of credit. this way you have traded a +/- 18% payment for a +/- 6% payment and accumulated rewards.

DIGG