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How to Pay off your credit card FASTER

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By CorporateCliimr
User-Submitted Article
(3 Ratings)
Pay off your credit card FASTER
Pay off your credit card FASTER
http://www.ukdebtconsolidationloans.co.uk/images/credit-card.jpg

Ever pay your minimum every month for your credit cards and still get into more debt. Find out a simple plan to help you pay your credit cards faster.

Difficulty: Moderately Easy
Instructions

Things You'll Need:

  • patience
  • money
  • credit card bills
  1. Step 1

    take all your credit card bills and line them up so you can see what you owe.

  2. Step 2

    now line them up in order of importance to you. It could be either the ones with the highest interest, the highest limit, the highest amount, etc..

  3. Step 3

    Each month we usually designate a set amount to pay our bills and pay slightly over the minimum on some and the minimum on others (which is what alot of people do and it further puts you in debt!!). Instead, take your most important bill and but the most of that set amount to that one bill and pay the minimum on the others. Continue this until that one bill is paid off and then move on to the second most important. Still continue with that set amount. This time the second credit card will be paid even faster since most of the amount form the first one is now moved to the second one

  4. Step 4

    Example:
    set amount per month - $500
    citi: minimum is $50, amount on card $800
    Chase: minimum is $100, amount on card $2500
    mastercard: minimum is $80, amount on card $2000

    Month 1:
    set amount per month - $500
    citi: $320, amount on card $480
    Chase: $100, amount on card $2400
    mastercard: $80, amount on card $1920

    Month 2:
    set amount per month - $500
    citi: $320, amount on card $160
    Chase: $100, amount on card $2300
    mastercard: $80, amount on card $1840

    Month 3:
    set amount per month - $500
    citi: $160, amount on card $0
    Chase: $260, amount on card $2040
    mastercard: $80, amount on card $1760

    Month 4:
    set amount per month - $500
    Chase: $420, amount on card $1620
    mastercard: $80, amount on card $1680

    and so on until you are debt free!!!

Tips & Warnings
  • Patience is key
  • you wont be debt free over night, unless you hit lotto
  • do not use your credit cards while doing this and if you do you might have to increase the set amount

Comments  

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on 2/24/2009 Helpful advice we should all pay attention to.

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on 2/23/2009 This is so important to take seriously and face how much debt you are in. A lot of people don't want to know but knowledge IS power. 5*

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on 2/16/2009 Definitely patience is the key. Very informative article. 5 stars and a recommend

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