3 Tips to Eliminate Credit Card Debt
1. First rule of paying off your credit cards, stop using them!
Your balances will never get paid off if you don’t take a break from them. If you are in a tough situation and are using them to help pay for your cost of living then your problem is much bigger then you think. If this is your situation, you need to take a close look at where all of your money is going and make some hard decisions on your spending habits. Buying a coffee on the way to work and other take out foods are a luxury you simply cannot afford at this time. Bring a thermos and your lunch to work and get back to cooking your meals from scratch to avoid spending to much money.
2. Pay off the lowest card balance first.
If you have more then one credit card, start by paying as much as you can on the one with the lowest balance and make minimum payments on the others until it is paid off. Some may argue that you should start with the card that has the highest interest rate first. However, the satisfaction of completely paying off one card will provide the ongoing motivation needed to pay them all off.
3. Use a cascading strategy.
Once you’ve paid off your first card, continue to shift the payments over to the next card and so on until all of your cards are paid off. After you’ve eliminated your high interest credit card debt, its now time to use these same payments to have some emergency cash at home. Upon saving your emergency cash, start putting these payments in an emergency saving account until you have enough to cover 1-3 months of your household bills.
Life can be a lot less stressful when you are able to pay for unexpected car or home repairs with cash instead of high interest credit cards and loans.
11 Most Read IRIS Articles of the Week!
Why Secure Passwords Matter and How to Create Them
10 Ways to Celebrate International Women’s Day
Becoming a Great Podcast Host with Celeste Headlee
New Guiding Principles for Opportunity Zone Investors
Leaders: Do You Challenge Your Status Quo?
9 Marketing Trends That Will Dominate This Year
How To Keep Envy From Destroying Your Workplace
6 Tips to Help Your Journey to Retirement
Who Do You Sell to First
Forward-Looking Investing1 day ago
Moat Investing: Powered by Morningstar
Market Strategist1 day ago
We Are Not Convinced the Market Storm Has Completely Passed
Development1 day ago
Advisors: How To Answer “What Do You Do?”
Markets2 days ago
Higher Mortgage Rates, Student Loans and Nike
Equities2 days ago
7 Stocks That Pay the Largest Dividends of All That Trade on Nasdaq – Or Do They?
Advisor2 days ago
The Wizards of Wall Street vs. The Selbees from Michigan
Markets3 days ago
The Chameleons Are on the Run
Compliance3 days ago
Regulators Focusing on How Firms Identify, Monitor and Test Custody Scenarios With Client Assets