Comments on: How to Pay Down Credit Cards

on 8/1/2008 Very good article! I would add a few things.
1. Pay yourself first. Put a regular amount in your savings every month. Even if it's just $10 a month to start. When you get used to that amount being taken out each month, bump it up to $15 or $20. It will add up fast.
1. If you are in a hole, stop digging! Cut up all your credit cards. If you feel you must have one for "true" emergencies, keep the one with the lowest interest rate and/or the lowest balance. Pay it off first.
2. In addition to rounding up, add a substantial payment amount to this one.
When you pay off the first one, start on the one with the next lowest balance. Add what you were paying on the fist one to what you are paying on this one. This will start a domino effect. When you pay off the 2nd one, add what you were paying on the 1st two to the payment of this one, etc. You will be amazed how fast your debts disappear.

on 5/14/2008 Great article! It's easier to read than to put into action but it would be great to be out of debt. Thanks for the ideals.

on 5/14/2008 Good article! Putting it into action will be harder than reading about it but it would be great to be out of debt. Thanks!

on 5/13/2008 Also when you have multiple credit cards always pay the higher interest one of first, no matter how high the amount is, in the long run you will pay less on interest. Pay one of first while paying the minimum on the rest, and don't be late that just gives them the chance to raise the rate. Sometimes when the credit card company sees you are doing this they will lower the minimum to make it look like you can afford to buy more, don't buy more, just keep paying the same minimum and it will get paid down sooner than if you lower your minimum. If are strong enough you could lower your minimum, if they do, and tranfer the remainder to the card of highest rate and pay it off faster yet.

on 5/13/2008 Also when you have multiple credit cards always pay the higher interest one of first, no matter how high the amount is, in the long run you will pay less on interest. Pay one of first while paying the minimum on the rest, and don't be late that just gives them the chance to raise the rate. Sometimes when the credit card company sees you are doing this they will lower the minimum to make it look like you can afford to buy more, don't buy more, just keep paying the same minimum and it will get paid down sooner than if you lower your minimum. If are strong enough you could lower your minimum, if they do, and tranfer the remainder to the card of highest rate and pay it off faster yet.

on 5/13/2008 Also when you have multiple credit cards always pay the higher interest one of first, no matter how high the amount is, in the long run you will pay less on interest. Pay one of first while paying the minimum on the rest, and don't be late that just gives them the chance to raise the rate. Sometimes when the credit card company sees you are doing this they will lower the minimum to make it look like you can afford to buy more, don't buy more, just keep paying the same minimum and it will get paid down sooner than if you lower your minimum. If are strong enough you could lower your minimum, if they do, and tranfer the remainder to the card of highest rate and pay it off faster yet.

on 5/13/2008 also, step 4 is really important. You need to have at LEAST 3 months worth of all your monthly bills in savings in case you lose a job or something happens. It seems unrealistic these days with many people living pay check to pay check, but it IS possible. Most of us are living beyond our means and look at the cost of something as "how much per month?". Not having cable (starting in your 20s) and saving and investing that money instead could add up a beach condo when you're 50! Get the free cell phone with a basic plan. Drive a cheaper gas efficient car, and one of the biggest money wasters is eating out. If you saved every receipt for a month from eating out and getting drinks, I think the average person would s#!t their pants when they saw how much and where they were spending their money. Pay attention. Stop eating out and you'll pay off your debt in no time.

on 5/13/2008 Good advice Fike. My husband has the same mentality, always reminding me, "If someone gives you a dollar, don't look at it as free money to blow. You can choose whether you save it or spend it. Just put it in the bank and forget about it."
If you have credit card debt, see if you can transfer it to a credit card with a lower rate and then pay it off. Use credit cards like you would your debit card. Keep track of how much you are spending so you can pay off the balance every month, that way you can make money off the credit card companies rather then them making money from you! (if you get rebates/rewards from using your card.)

on 5/12/2008 In step 4 you suggest people to keep around 3-6 months worth of bills in a savings account. Nowadays, probably moreso now than in the past, people live paycheck to paycheck so that might be a hard apple to swallow.

on 5/12/2008 In your notebook, keep a record of the interest rates for each of your debts and put any bonuses toward the highest interest debts first. Think about how you can utilize your stimulus package or holiday bonus to keep your buffer and how to leverage it against your debt.

on 5/11/2008 Excellent advice!!!

on 5/11/2008 What I have read (and it's helped me considerably) is pay double your minimum payment each month (if you can), rather than just rounding up to an even number. If you owe $50.00, pay $100.00. You'll be amazed at how quickly it comes off -- oh and make sure you call your credit card periodically to get the lowest interest rate. They don't do that for you!

on 5/11/2008 What I have read (and it's helped me considerably) is pay double your minimum payment each month (if you can), rather than just rounding up to an even number. If you owe $50.00, pay $100.00. You'll be amazed at how quickly it comes off -- oh and make sure you call your credit card periodically to get the lowest interest rate. They don't do that for you!

on 5/11/2008 What I read once (and it's helped me) is to always pay double your minimum monthly payment - not just rounding it to an even number. That is, if you can. So, if your minimum payment is $50.00, you pay $100.00. Comes off much faster that way!

on 5/11/2008 I agree with most of what was said here but would think that in step 3 one would do better to follow the advice of radio talk show host Dave Ramsey (http://daveramsey.com) and apply the extra funds to the smallest debts first, then the next smallest, etc., rolling the payment from each paid-off debt onto the next as you go.