Pay off Your Credit Cards Faster
Do your financial goals include crushing your credit card debt as quickly as possible?
Credit Card debt can be tricky, and very high in interest (department store cards are usually the biggest culprit)- which can completely derail even the best planned budget. Here are some hints to help you expedite the process, and to take steps towards eliminating it altogether.
Rather than slapping amounts all over the place, pick the card that has the highest interest rate and focus on paying that down. Because of the higher interest rates, you are effectively paying more towards interest than you are towards lowering the actual debt.
Make minimum payments on your others, but apply as much as you are able to that one card. When it’s gone, move on to the next one and apply a similar process.
If all the interest rates are similar, than pick one with the smallest balance. Knock that one out of the way and move on to the next.
This is gives you an added physiological benefit of being able to check one off of your list.
Do you have room on one of your cards that bears a lower interest rate? Do a little self-consolidation, and compile the balances from those cards onto that card.
Cut up the other cards and throw them away!
Pay more than the Minimum
You’ve probably gathered by now that paying the minimum does not go very far in terms of eliminating debt.
Try to adjust your spending so that you can put extra money down every month on that principal.
Every little bit counts. Make small changes to your spending (i.e. brown bagging your lunch for work, having date night at home, as opposed to going out for dinner and a movie, electing to hold off purchasing new clothes or luxury items). These smaller amounts can add up quickly- and help push you closer to your goal.