Know which card you should pay off first
If you have at least several cards that you are struggling to pay off and really can't afford to pay more than the minimum due each month, then here's a simple jump-start plan that can help you pay off each card in rapid succession without loans.
Let's attack the card that is charging you the highest (APR) annual percentage rate first, by doing the following:
List all your credit cards and how much the minimum monthly payment is for each, then total all the minimum payments up to see how much per month you have been paying, and sadly, gave you very little results.
To pay that first card off, fight fire with fire, use this strategy: charge the same amount as the minimum due on each card. Don't exceed it by much, or the plan will not work. Buy groceries, gas, etc., and save the cash that you would have used, had I not suggested you charge it. Save the cash in an envelope. Don't charge things you don't need, it's important to do this with extreme discipline to get out of debt. For example, (Visa card 6789) requires a minimum payment of $67.00, so go out and charge $67.00 on that card and do the same thing will all your other cards.
At the end of the month, you will have an envelope filled with cash in the amount of all your combined minimum payments. Now take that chunk of cash and make a lump sum payment to the card we are attacking. Pay the minimum due to the rest of the cards, as you've done up to now; (from your pay) or source you've always used, not from the envelope. Don't worry, those other cards will all have balances close to what they were, they will be in virtual lockstep, until you slam them down the same way.
What you've done is to make a nice dent in that high interest card without taking on any loans. Each month, continue the process and pay down that card with a chunk until it is completely paid off. This will most likely happen within a six month period, on average. Now repeat the process, and every six months or so, you will be paying off another credit card.
The rationale is; pay off a card completely and use the minimum that you were used to paying on that card as a contribution to help pay the next and the next card off. For example, if your minimum payments added up to $500 per month, continue to have available the full $500 to use, don't water it down. It's true that as you pay a card down, the lender will ask for a lesser minimum payment. However, don't pay the lesser amount, continue to allocate the same higher minimum amount that you started with. This is part of the inherent strategy that allows you to pay off your debt without loans.
By using this sensible and independent strategy, you will become debt free and rewarded with higher credit scores and higher credit lines. This plan was developed as an aid to those who are ready to use charging as a vehicle to get out of debt, versus increasing debt. The author cautions the user not to use the accumulated cash for any other reason other than as payment to reduce the debt.
Let's attack the card that is charging you the highest (APR) annual percentage rate first, by doing the following:
List all your credit cards and how much the minimum monthly payment is for each, then total all the minimum payments up to see how much per month you have been paying, and sadly, gave you very little results.
To pay that first card off, fight fire with fire, use this strategy: charge the same amount as the minimum due on each card. Don't exceed it by much, or the plan will not work. Buy groceries, gas, etc., and save the cash that you would have used, had I not suggested you charge it. Save the cash in an envelope. Don't charge things you don't need, it's important to do this with extreme discipline to get out of debt. For example, (Visa card 6789) requires a minimum payment of $67.00, so go out and charge $67.00 on that card and do the same thing will all your other cards.
At the end of the month, you will have an envelope filled with cash in the amount of all your combined minimum payments. Now take that chunk of cash and make a lump sum payment to the card we are attacking. Pay the minimum due to the rest of the cards, as you've done up to now; (from your pay) or source you've always used, not from the envelope. Don't worry, those other cards will all have balances close to what they were, they will be in virtual lockstep, until you slam them down the same way.
What you've done is to make a nice dent in that high interest card without taking on any loans. Each month, continue the process and pay down that card with a chunk until it is completely paid off. This will most likely happen within a six month period, on average. Now repeat the process, and every six months or so, you will be paying off another credit card.
The rationale is; pay off a card completely and use the minimum that you were used to paying on that card as a contribution to help pay the next and the next card off. For example, if your minimum payments added up to $500 per month, continue to have available the full $500 to use, don't water it down. It's true that as you pay a card down, the lender will ask for a lesser minimum payment. However, don't pay the lesser amount, continue to allocate the same higher minimum amount that you started with. This is part of the inherent strategy that allows you to pay off your debt without loans.
By using this sensible and independent strategy, you will become debt free and rewarded with higher credit scores and higher credit lines. This plan was developed as an aid to those who are ready to use charging as a vehicle to get out of debt, versus increasing debt. The author cautions the user not to use the accumulated cash for any other reason other than as payment to reduce the debt.
