How To Payoff Credit Card Debt In 3 Easy Steps
According to new studies, over 8% of US households owe $9,000 or more on their credit cards. Some families even wind up paying bills with a credit card! Imagine how much money the credit card companies are earning in interest on that money... It's no wonder they don't want you to payoff credit card debt every month.
In fact, they offer you a minimum payment that's so low, it can take as much as 20 years to get it paid off if you only make the minimum payment every month.
If you're tired of running on this credit card treadmill and want to get your debt paid off once and for all, here are three easy steps to get you on your way.
1. Don't just make the minimum payments
As I mentioned already, making minimum payments every month can take as much as 20 years to get the full balance paid off. And who want to be still be paying for something that you bought last month 15 or 20 years from now?
If you can't pay off the full balance every month, always make more than just the minimum payments.
2. Focus on one card at a time
Step 2 is going to fly in the face of what I told you in the first step :-)
You're better off to focus on one card at a time than pay a little toward multiple cards. If you have more than one credit card with a balance, make the minimum payments on all but one and put all your extra money towards paying that one off.
Then move on to the next one, and so on. You'll see results much faster doing it this way.
3. Ask for a better interest rate
If you have to carry a balance on your card, call the credit card company and see if they will give you a better interest rate. The credit card business is highly competitive, and they will often lower your rate to keep you as a customer.
This usually works best if you have some offers from other credit cards with lower interest rates that you can use as bait.