Formula to eliminate credit card debt

Tips to eliminate credit card debt

In our long experience with debt elimination, we’ve seen that following these steps it is possible to eliminate credit card debt fast while minimizing costs.

Is better to start off paying for credit cards with higher interest rates, since these rises interest costs and cost you more.

1. First make a list with every credit card you have.
2. Write down balances, interest rates, and the minimum payment as described in the latest statement. Determine the minimum payment percentage; this is usually between 2 and 2 1/2 percent of your balance and you can find out by calling your bank or checking on your monthly statement.
3. Order the list starting at the top with the credit card with the highest interest rate, and the credit card with the lowest interest rate at the bottom.
4. Make the sum of all minimum payments.
5. Make a budget and reduce expenditures to be able to put more money over your minimum payments.
6. Make a payment plan to pay more than your minimum on the credit card with the highest interest rate, and make the minimum payment towards the other credit cards.
7. Stop charging expenses to your credit cards, specially the one with the highest interest rate.
8. Follow the payment plan until you pay off the card charging the highest interest rate. When you’ve done this, add what you were paying for this card with the minimum payment on the second credit card.
9. Use this money to pay this credit card while making the minimum payments on all the other credit cards.
10. When you pay off for this card follow the same procedure until you have completely paid for all of your credit cards.