Eliminate Debt
The complete guide on how to completely Eliminate Credit Card Debt.
Plastic money or credit cards have slowly become an indispensable part of our lives. Credit cards while providing a host of benefits are proving to be double edged swords. These cards eliminate the need for carrying money and have made transactions easier; on the other hand these cards have induced reckless spending and thereby ever increasing debt.
The debt mountain is growing at an exponential rate. If left uncontrolled it can reach epidemic proportions. Listed below are a few methods and tips to eliminate credit card debt.
The first and foremost step that you must take is to create an inventory of all the credit cards that you own , the balances, expenses incurred and minimum payment that is required. The minimum payment required ranges between 2 and 2.5 %. Then list out the credit cards in decreasing order of interest rates.
The card with the highest interest rate occupies the top spot and the one with the lowest interest rate is listed at the bottom. Now add up the minimum payment required from each card. This amount is the minimum amount payable each month, try and come up with a figure that you can add to this. That is, in addition to minimum amount you have to eke out an extra amount from your budget.
This extra amount is necessary if you are determined to eliminate credit card debt. The extra amount is to be used towards the payment of credit card for which the interest is highest. Continue doing this month after month, till you have completely erased the debt of the first card on your list (the card with the highest interest rate). Once this is done, start on the second one. Pay off the entire debt on the second one. Continue this process this you pay off the debts of all the credit cards on your list.
