Eliminate credit card debt

Submitted by infowebz on Tue, 02/02/2010 - 06:55

1. Make a list of all your credit cards in a page.
2. Arrange them according to the interest rate highest at the top and lowest at the bottom.
3. Find the minimum payout of all cards and total the amount.
4. Pay the total monthly minimum payment on time and if possible pay more then the minimum amount to debt free quickly.
5. Don’t make any payment due cause later you have to pay high interest rate. So you should have a proper budget plan before applying for a card.
6. Continue this process of payment until the first card is paid off and continue the process for all cards.

Hello infowebz,

Thanks for your information. Other than this method one can also follow the snowball technique, to pay off the debts. In it a person needs to make a list of all the debts in ascending order of amount owed. The one on the top of the list is to be paid first. Though this method takes more time to pay off the debts, it is much easier and popular among people.

Tue, 02/02/2010 - 07:29 Permalink

paying minimums will never get you out of debt. you'll want to see how much of that min is going towards ur balances each month. once you have that figure divide that by the amount of debt you owe to that creditor- this shud result in how many months itll take to pay back that debt paying the minimums.

the average creditor establishes the minimum amount due to cover the interest and a fraction of the payment going to the principle balance, resulting in a pay back plan that extends to 100 months.

pay back at this rate usually results in paying back 3-4x's the actual amount charged in the first place.

Wed, 02/17/2010 - 19:14 Permalink