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Finances in 55 Seconds: Create a Credit Card Debt Reduction Plan
Posted By Miranda Marquit On 05/02/2011 @ 12:06 pm In Debt | 9 Comments
One of the best things you can do for your finances is to pay down your credit card debt. Credit cards are notorious for high interest rates and fees. Once you are trapped in the cycle of making credit card payments, it can be difficult to get out. And, worst of all, the interest that you pay on your credit card balances goes straight into someone else’s bank account . Interest, paid for the privilege of borrowing money, offers you no other benefit. It’s pure expense.
If you want to improve your finances, and move along the path to financial freedom faster, it is best to pay down your credit card debt as quickly as possible. Creating a debt pay down plan can seem a daunting task, but it doesn’t have to be. You can put together a credit card debt reduction plan in 55 seconds or less:
Every month, make sure that extra amount is going toward the credit card account you are working on. You continue to pay the minimum on all of your other credit cards. When you pay off the first credit card on your list, you can take the entire amount an apply it to the next card on your list. So, if your next card has a minimum of $65, you would add the entire $175 you have been paying on the first credit card to the minimum for a new payment of $240. Dave Ramsey popularized this time-tested technique as the “debt snowball .”
While it will take you considerably more than 55 seconds to get rid of all of your credit card debt, it doesn’t mean you can’t get started in less than a minute. A few seconds is all you need to kick start your debt pay down plan.
(Photo: pumpkinjuice )
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