Q:
Is
there a quick way to get out of credit card debt?
A:
Of course the easiest way
is to not use credit cards in the first place! But then, that is just not the way of our society, is it? So, that answer is
not very useful or instructive. Most of us these days use credit cards in some way or another whether that is to accumulate
mileage points or to help make ends meet each month. Even for those who use credit wisely, credit can accumulate quicker than
expected and the best way to pay off that debt is truly to stop using THAT card. Make a commitment to pay off
one card at a time focusing upon the one with the highest interest rate. Most consumers tend
to do what I call the ‘scatter gun approach’ in which they pay a little on every card they have. And the credit
card companies just LOVE you for doing that because they know the secret to staying in debt is exactly that … paying
a little on all cards. I see clients do this all the time using that approach and once they understand THE SECRET to paying
off debt they are amazed at how quickly it disappears.
What is that secret? Pay one card at a time, focusing all your extra funds
(no matter how big or small) on that ONE card. Do not cheat and put a little on another card too. That defeats the purpose
of focusing all your energy on the one. My suggestion is to pick the card with the highest interest rate, YET many times you
have one card with a small enough balance that focusing upon paying that off is more gratifying. In that case, focus upon
it and once it is paid off then take those very same funds and apply them to the next card along with the monthly payment
you already make on that card.
Are
you confused? Here’s an example … Card A has the highest interest rate and a monthly payment of $50. You
can afford to add an additional $50 to that monthly payment, making it $100 a month. All other cards you pay the minimums
(yes, you heard me right, the minimums … no cheating now, focus on the ONE). You set up an automatic payment for that
credit card of $100 and forget about it. Again, no cheating … do not change the dollar amount you pay each month just
because the statement says you can. The credit card company is just trying to keep you in debt forever. Once you pay off Card
A, then take that full $100 and apply it to Card B along with its minimum monthly requirement. So, let’s say Card B
requires $25 a month, now you will be paying $125 to Card B. And so on …
This is the SECRET that debt repayment company’s use everyday to
help you pay off debt. You can do this for yourself. Using those types of companies can and will cause harm to your credit
report and credit scores. Those programs are considered SOFT BANKRUPTCIES.
Yes, you can make a difference with as little as $10 to $20 extra each
month. Just remember THE SECRET is to focus on one at a time. Repeat after me … one at a time, one
at a time, one at a time.
