I want to tell you how to get rid of credit card debt without losing your sanity. We all want financial security. With thousands of dollars in credit debt, you definitely won’t have the feeling of security you’re looking for. There are many different ways to get rid of credit card debt. I will say what I think is the best one.
List of Credit Cards in Order of Highest to Lowest Interest Rate
Many financial advisors will tell you to review your accounts to get the interest rates they quote you. They recommend that you choose the card with the highest interest rate first, and then transfer to the next highest credit card. This will reduce the amount of capitalized interest you pay.
This seems like a very logical and financially sound way to go about paying off user credit, but I know better, an easier way.
Snowballing Just
List Cards in Order from Smallest to Largest Balance
The way I tell people to get rid of credit card debt is quite different. Rather than listing your documents in the order of the interest they report, simply list them in order of smallest balance to highest balance.
If you start with just $100 dollars a month to pay off your used credit card debt, you’re on your way. If your first credit card balance is $1000 and you have a minimum payment of $40, you will be able to pay it off quickly, and then add $40 per month to the $100 you already have in savings.
You will now have $140 per month to pay off your next largest credit card balance. When this credit card is paid off, you have to use even more money to get yourself out of paying off the bills each month.
Book Snowball rolling over your debt
As you pay off more credit, you will have more and more money to pay off the other balance. The amount of money becomes bigger as you “roll over” your credit card debt, like a rolling hill.
I find this approach much more encouraging and less trying then thinking about which card has what interest rates and trying to pay off the credit card with a large balance that could take years because it has a higher rate. Interest rates can also change for you, so you can pay off the loan in different months and never pay off the card.
If it takes you a few years to pay off your first loan, you can easily lose interest and try to get rid of it.
Don’t go down with your Credit Card Debt
A huge factor in paying off your credit card debt successfully is your mindset. Don’t let credit card debt get you down, because you won’t win if you do. You have to tear up, raise a goat, a man, and even get angry at the credit you owe and kick at them.
By using the snowballing method you will start redeeming credit cards faster and get excited for the next payday. You can sell your belongings and spend less, so you can free yourself from credit servitude sooner.
Now the impulse is to kick something and you must win your faith.
