How To Eliminate Credit Card Debt Yourself?

How To Eliminate Credit Card Debt Yourself

Credit card can make you feel trapped, restrict your budget, and cause you stress.  Eliminating credit card debt will allow you to experience financial freedom! While eliminating credit card debt may seem like a daunting task, it is actually something that you can easily do by yourself.  The method described below is called the “snowball method” and is heavily recommended by financial advisers such as Suze Orman.

Snowball Debt Elimination Method

There are two methods to the snowball method.  The first option is to pay off your balances from lowest amount owed to highest amount owed.  The second option is to pay off your balances from the highest interest rate to the lowest interest rate.

1.) Make a list of all of your credit debt.  Be sure to include department store cards and account such as PayPal Buyer Credit or BuyItNow.  Just because you don’t have a physical piece of plastic doesn’t mean it isn’t a credit account.  Be sure to include them all.

2.) Gather data on each account.  This data should be, at minimum, the balance of the account, the interest rate, the minimum monthly payment, and the due date.

3.) Using either the lowest balance method or the highest interest rate method, make the minimum monthly payments to each account.  Pay as much extra as you can (even if it is just $20) to the account with either the smallest balance or the highest interest rate.

4.) When this account is paid off, add the amount of that payment to the next account.  For example, if you were paying $150 to Visa and you have paid that balance off, add that $150 to the next account.  Because you are already used to making those monthly payments, make the most of your budget to get out of debt quickly.

5.) Continue this process until all of your debt has been paid off.  Do not falter along the way.  Look for the light at the end of the tunnel.  Have a celebratory party when you have made your last payment.  Do not rack up credit card debt again.

Financial Freedom!!

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