Things You'll Need:
- Credit card Bills
- Monthly Recurring Expense List
- Legal Pad
-
Step 1
Its that time of year again.... the post holiday angst of waiting for the evidence of the "festival of spending" spree. Frightening I know... All is not lost. If you are unable to pay the balances on all your credit cards up front (oh sure, lemme get my checkbook out right now) then there a few ways to organize your post holiday debt in a line of PAY OFF SUCCESSION!
-
Step 2
Ok there are 2 ways to approach this, depending on how much is owed and what your ability to pay is. Once all you bills arrive (yikes!) simply set them out on the table. You can sort and classify them in several different manners.
Sort your bills by highest balance OR highest interest rate and decide for yourself, based on how much you can pay at a time, what is the best way for you to approach this. I always suggest highest interest first UNLESS the highest interest card is the lowest balance you have. look over each bill statement and try to figure how much a month in charges it will accrue. -
Step 3
Once you have sorted them, list them on your legal pad in order of importance of who is getting paid first. Always make the minimum payment on all the bills, apply extra money to the one that is first on the list and work your way down. Try not to deviate from your financial plan repayment schedule and pay those bills OFF!! You will feel a great sense of accomplishment and wont be frightened every time a bill shows up in the mail!
