Things You'll Need:
- self discipline
- spreadsheet
- more self discipline
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Step 1
Save the credit card with the most favorable terms and cut the rest up. Put the one you saved in a safe place (not in your wallet) and use it only for emergencies. Then proceed to the next step to pay off your credit cards.
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Step 2
Calculate how much your monthly income is (after taxes) and also make a list of your monthly expenses. Budget out how much money you’ll need to pay for each of these expenses and figure out how much “left over” money you have. Put this extra money towards paying off your credit card (see tip below).
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Step 3
List your debts, including the balance and the interest rate for each one. Each month, pay the minimum balance on all credit cards except the one with the highest interest rate. Pay as much as you possibly can on this card each month until it is paid off. Then start paying as much as you possibly can on the card with the next highest rate, while continuing to pay the minimum balance on the others. Keep doing this until they're all paid off. This is the only time you should ever pay the minimum balance on any card.
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Step 4
Having a monthly home mortgage to pay can be a huge burden. Look into opening a money merge account that will help you pay your mortgage off in a third of the time. (Ultimately saving you money by eliminating the insane interest you’d be paying).
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Step 5
Cut back on “extra” spending. Eat at home instead of going out to eat. Bring your lunch to work. Shut off your AC and use a window fan to bring in the cool night air. Cancel your monthly cable subscription. Drive less: carpool, ride your bike, come up with fun activities close to home.
