There are many strategies you need to follow to pay off your credit card bills. Here are some ways you can follow-
At the very first figure out how much you have or can afford to pay on your credit card debt. Examine your normal expenses and find how much money you are left with of your monthly budget. Add all your net monthly income from all sources and your monthly expenses; include minimum payments on all your credit cards and loans. And by subtracting all your expenses from your income, the number you get is your net income- which you can afford to send to your creditors each month.
After figuring out how much you can afford to spend paying back your credit cards, the next step is to find out the order you want to pay your credit cards. Following are two methods you can follow to pay off your credit cards.
1. Choose to pay off your credit cards with highest interest rates. This will save your money in the long run, especially if the highest interest rate credit card also happens to be the card with the highest balance. Cards with the highest interest rates and with the highest balance, take the longest to pay off.
2. Choose to pay the cards with the lowest balance first. The lower balances are easier and quicker to pay off. Also there are immediate tangible benefits for which this might be a better choice. When you start paying off your payments, the feeling of accomplishment will motivate you to move ahead.
Selecting the method you’re going to use to pay off your credit cards, you must list of all of your debts and the companies you owe to. Then prioritize which card you want to pay off first-either from highest interest rate to lowest interest rates or from lowest balance to highest balance. Try to make the maximum you can afford from your entire net income (income –expenses) to pay off the credit cards on the top of the list. And send the minimum payments to other credit cards. The more you pay, the faster you will be debt free and the less you waste on interest. Be careful with your budget to prevent yourself to getting into debt. Take an expert advice to escape form any harm by credit card mismanagement.
Article Directory: http://www.articletrunk.com
After repaying your first credit card, move to the second on the list. Keep following this process and eventually you can come out of the debt hole and can count yourself among the minority of the population that are 100% debt-free.
Please Rate this Article
Not yet Rated