(5.00 out of 5) (5.00 out of 5) (5.00 out of 5) (5.00 out of 5) (5.00 out of 5) (5.00 out of 5)
(4.80 out of 5) (4.67 out of 5) (4.50 out of 5) (4.50 out of 5)Credit card and finance computations can make your head spin, we have developed common calculators to assist you.
Random Word:
Your credit history is an accounting of how and when you have borrowed... ...more
There are several ways to go about paying off debt. You can just pick one of your debts and pour as much money as possible into paying it off, you can continue to make minimum payments on your debts and slowly pay them all off, or you can pay extra money to several debts each month. My husband and I tried all of these methods, but we became discouraged with them. We are still paying off our debts, but we have found a debt pay off method that is working for us.
We discovered that focus is the most important thing for paying off debts. When we randomly picked a debt to pay off or tried different ways to pay off all our debts at once, we weren’t focusing. We decided to start with our smallest debt, a department store credit card with a balance around $300. Any extra money we had each month went to pay off the balance of this debt. We paid only the minimum payments on all our other bills. We were able to pay about $75 every month for the credit card and paid off this debt in four months. Then we started applying this $75 to the debt that now had the smallest amount, a credit card with a balance of about $4,000. We were already paying a minimum payment of $120, so now we were able to pay $195 every month. Anytime we came in under budget for the month, we applied this money to the credit card, and we were able to pay this debt off in a little over a year. Then this $195 was added to the payment of the next debt.
Some financial experts suggest starting with the debt that charges the most interest. This is a good way to plan your debt pay off strategy, but my husband and I liked starting with the smallest debt because we were able to see fast results. This kept us focused and interested in continuing our plan for debt pay off.
My suggestion for you:
Narrow your focus for debt pay off. Choose one debt, and concentrate on that debt until it is paid off. When you pay off the debt, apply the payment amount for this debt to the next debt you choose to pay off.
Related Posts:
(2 Votes, Average: 5.00 out of 5)
Loading ...
Printer Friendly Version
Next Post: How to Get Back on Track
How Many Accounts Should You Have? (previous post)
No comments yet.
RSS feed for comments on this post.
Leave a comment