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Pay Off Your Credit Cards in
Record Time
Credit card debt - it seems we are drowning in
it. Each year, Americans rack up more and more credit
card debt and it becomes harder and harder to pay them off it
seems. Many of us have multiple credit cards with
different balances meaning that each month we have to go
through and make sure each one gets paid - and all too often
we pay and pay without seeing as much as a dent being made in
the balance thanks to interest charges!
If you are trapped under a mountain of credit
card debt, there is hope. We're going to show you how
you can manage that debt and get it paid off in record time by
following a very simple principal. In fact, you won't
even need to spend $1 more than you already are paying on the
cards - we are just going to allocate that dollar a little
differently. Of course, if you want to allocate a few
more dollars towards the cards it will make the whole process
go a bit smoother.
Let's say that you have four credit cards, each
with different balances and interest rates. First, find
out which one has the highest interest rate - that is going to
be the one we tackle first. Why? Because it is the
interest charges that trap many consumers. We all know
that credit card companies like to raise rates at any time for
any reason. Five minutes late with a payment and they
raise the rate to something astronomical! Well, we are
going to beat them at their own this time around.
Now that you know which card carries the highest
interest we are going to tackle it to get it paid off the
fastest. On your other three cards, you are just going
to make the minimum payment required. Any extra money
you have from your credit card payment budget (you do have a
budget, right?) we are going to use to put towards that
card. We are not even going to think about the other
cards other than making sure we get that minimum payment in on
time. We are going to concentrate the majority of our
time, money and effort on the one with the highest
interest.
All the excess funds you have for your credit
cards, after you've paid the minimum on the other three, are
going to go to the one with the highest interest. Make
sure you are paying the minimum on it plus some - if you have
to give up lunch for a while, do it!
You are going to continue doing this every month
- paying the minimum on the other three, and allocating all
your extra funds towards the one with the highest
interest. What are we doing? We're decreasing the
balance on the card with the highest interest. Every
month your interest charges for it will continue to go down as
you pay the balance off - and each month it will go down by a
bigger amount even if you continue sending in the same
payment!
Now are you ready to really see your balances
drop? When you get the first card paid off, take all the
money you were paying towards it PLUS the money you were
paying towards the card with the 2nd highest interest - now
you are sending all that money in every month. You've
doubled up! The balance will drop like a rock!
It gets even better! Wait until you've
paid off two cards and now are taking the money from the 1st
card you paid off, the 2nd card you paid off and the money
from the 3rd card you are paying on - faster than you can say
"Charge it!" that balance will drop.
This technique works because as we pay off a
card, instead of pocketing that money or spending it on
something else we are using it to increase our payments on
another - the domino effect kicks in as we pay off more cards
until we are paying off the balances quicker and
quicker. Before you know it - you could be debt
free!
Now, the important thing to remember here is
this: You can't be running out and using these cards
every month or this won't work! If you have to have one
card for travel, business or expenditures then make sure you
pick one card and stick to one card. Hide and lock up
your other cards to resist the temptation.
Give this trick a try, and you will find in just
a few short months you will be seeing the light at the end of
the credit card tunnel! |