3-Step Formula to Get Out Of Debt
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| 3-Step Formula to Get Out Of Debt |
1-Make List of Your Debts
First of all know how much deep you are in
credit card debt. Many credit card holders are shocked when they know the total
credit card debt to be paid. They unconsciously stay away from compiling this
list. But you will have to know your total debts. List down lender name, date
of debt, total amount to be paid and interest rate. Arrange list according to
interest rate. Highest interest rate credit card debts should be shown first.
2-Pay
Credit Card with Highest Interest Rate
Now start paying highest rate credit card
first. Always pay more than minimum amount. If you are addicted to minimum
payment traps then you will never be out of debt for whole of your life. Banks
have arranged minimum debt trap in such way that a loan could take many years
to be paid off if you are just paying in minimum amounts. Always pay more than
minimum. These small extra payments will save you literally thousand dollars.
3-Start
Frugal Living
For as long as you are in debt, start frugal
living. Cut off your credit cards. Ask companies to not offer you more credit
cards. Discard impulsive buying. Try to save every penny if possible. These few
dollars added to minimum payment amounts will create a snow-ball effect towards
your credit card debt payments.
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