sk a friend what money
resolutions they made at The second step to paying down
the beginning of the year credit debt is to pay more than
and your bound to hear them reply the minimum balance due. Most
"Pay off my credit cards." Ask credit card companies require a
them how they planned on reaching minimum monthly payment of 2.5%
that goal and most of them won't of the outstanding balance. For
have an answer. example, if you have an
outstanding balance of $1100.00
The obvious first step to paying on a credit card charging an
off credit card debt or paying Annual Percentage Rate (APR) of
down credit debt load is to cut 18.9% your minimum monthly
back or eliminate the use of your payment would be $27.50. It will
credit cards. For some people take you 66 months or 5.5 years
this first step can often be the to pay off your balance of
most difficult. If you're used $1100.00 making the minimum
to spending freely with plastic payments. The credit card
and worrying about the company will make $676.94 in
consequences later, it's interest from your use of their
difficult to break free from this credit card.
"buy now, pay later" attitude.
Monthly payments are purposely
To gain control of their careless kept low by the credit card
credit card spending habits, some companies so that they can earn
people cut up their credit cards as much as possible from the
therefore making it impossible to interest rate charged to you the
use them. Others lock up their consumer. Paying just the
credit cards or hide them in a minimum payment will keep you
safe place and vow to use them tangled in credit's web for years
only in an emergency. and years to come.
adding just that $10.00 a month
If you've been paying only the to your minimum payment, you'll
minimum due month after month, trim 23 months or nearly two
ask yourself this question, "Do I years off of that credit debt!
have an extra $10.00 I could On top of that you'll save
apply to this month's payment?" $277.00 in interest alone!
I'm sure that most of us could That's money you can put toward
find some way to come up with an savings or paying off other
extra $10.00 for the month. Try debts. Imagine how much you'd be
cutting out a few cups of coffee able to save if you applied this
or lunches at your nearby fast same simple strategy to each of
food outlets and in no time flat your other credit card debts!
you'll have saved up the extra
money that you need. Paying down credit debt doesn't
always mean having to make huge
Now, it's time to unveil "The monthly payments or sacrifices.
Simple $10.00 Debt Elimination It just takes some basic planning
Solution." Take that extra and a simple effective strategy
$10.00 and add it to the minimum to make it work.
monthly payment above, therefore
making a payment of $37.50. By
About the Author:
"© 2005, http://www.yourfreecreditreportnow.com
Author: James H. Dimmitt
James is editor of "To Your Credit" a FREE weekly newsletter focusing on managing your personal finances and credit. Subscribe and get a FREE copy of your credit report when you visit: http://www.yourfreecreditreportnow.com
Source: www.isnare.com
