Debt Elimination Now
Do you have a lot of differnt credit cards and are making more than your minimum payments every month than this article is for you. Credit Card Debt elimination is a must! Outside of settling the debt for less than you owe or filing for backruptcy protection the following 2 approaches are the most popular strategies to paying off credit card debt.
Debt Elimination takes discipline
One approach takes extreme discipline and the other just might make you feel like you are achieving your goals of being debt free even though it will actually take longer to get out of debt than the first approach.
sidenote: The good thing about credit cards is that they are unsecured loans that typically allow the creditor to only come after you for payment vs. having the ability to take the products that you bought with your credit card.
Paying your highest interest first
Option 1: Get a piece of paper and jot down all of your credit card accounts in order of highest interest rate to lowest. Pay the minimum on all of them and any excess you have to commit to your credit card accounts pay towards the highest interest credit cards regardless of how much you owe on each. Economically this is the best course of action to for debt elimination however psychologically it can be hard especially if your highest interest rate credit card is the one you owe the most on.
Paying you smallest balances first
Option 2: Instead of paying your highest interest rate cards jot down your credit cards in order of smallest debt to largest. Pay your minimum payments on all of your credit cards and any excess pay towards your lowest debt. This is not the best way to pay off your debts the quickest however for many folks who want to feel like they are accomplishing something getting any of those debts off of their list o’ debts just feels good. Either way you are handling your situation and on to a happy free life due to debt elimination.