First of all, rank your debts using the interest rate as main criteria. The highest is the most important. Focus on this one. Set a percent of your regular income to your personal “reduction debt fund”. Be realistic and make a reasonable paying interval/income percent ratio. Cutting out half of you meals does not help, nor does overly optimistic laissez-fair approach.

If regular incomes are doubled by some unexpected income – like surprise bonuses or allowances – direct it as much as possible to the “reduction debt fund”. Of course you should not neglect the balances on the other debts, but the highest interest is the top-level priority. Just pay the minimum monthly rate on the others.

Once your goal is reached – and the highest interest credit card debt is paid-in-full, re-focus on the lower-interest credit card debts. Are these debts paid on time? Reevaluate the necessity of these debts considering the new economic realities. Do not get rid your cards unless necessary! Canceling credit cards lowers your credit score – and you may end up with bigger variable interest rates.

Keep in mind that this is after all your decision, capitalism offers options so choose the best interest according to your needs. A reasonable, well-thought approach, taking under consideration all your regular income resources and a good evaluation of your needs will save you a lot of stress. And if you made an extra effort and paid a high interest credit card debt in full, you should ask your self: Was it worth it?

Paying Off Credit Card Debt With Proper Planning is a post from: Paying Off Credit Card Debt

Paying Off Credit Card Debt With Proper Planning is from Paying Off Credit Card Debt

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Don’t panic! It can be done, you can get out of this alive!

First thing that you need to do is find your last monthly statement and list all your credit cards. Include the balance, interest rate and minimum payment.

Put your cards in order on interest. The highest should be on the top.

Calculate the total of your minimum payment. Remember this is the absolute lowest you should pay each month, but the best solution would be to pay more than that.

Now pay the minimum on each card except for the one at the top, since this is the one absorbing most of your money on interest. Do whatever to get it paid as quickly as possible.

When you manage to pay this one off repeat the process with the following cards until all your credit card debts are paid off.

This is a precess that will take time and patience, it won’t make your debt vanish into thin air. To help things speed up you could call your credit card company and ask for a lower rate. You have nothing to lose. The worse they can say is no. Or you could try transferring some of you balance to a low interest card, although it’s hard to find a good deal these days with all the hidden fees.

The great thing about this strategy is that is that as your card balance decreases so does your minimum payment. So with each month it gets easier and easier to pay it off.

Paying off your Credit Card Debt NOW! is a post from: Paying Off Credit Card Debt

Paying off your Credit Card Debt NOW! is from Paying Off Credit Card Debt

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