Pay the high interest credit cards First
Interest rates to add to our debt every day. The higher the interest rate, the more it contributes to our overall debt. A good way to get your debt under control is to start eliminating the high interest rate credit cards you pay by paying extra for them until they pay off.
Start with the credit card that has the highest interest rate, and pay extra to it each month until the balance is gone. If you have `credit cards with the same interest rate, then start with the accounts that have the first balance. The more high interest bills you can get rid of the lower your debt will go. Once the high interest credit card is paid off, cut it and a letter to the company asking them to close your account write.
List and classify Read it daily
Debt is easier to work if you can see it all listed together on one sheet of paper. Make a list of all the installment accounts you have, minus your utilities, and then focus on paying them off. Include the name of the creditor, the type of account it is, the interest rate you pay, the monthly minimum payment, and the remaining balance. If you can see your debt listed together, you can formulate a plan to help pay it off.
Cut Up Your Credit Cards
The easiest way to stop the financial damage your credit cards do, and get your debt under control, is to cut your credit cards. After the credit cards are cut out, you can then work on a plan to start paying off the balance. The temptation to use your credit cards while still trying to pay them off can derail any efforts you make to get your debt under control. With the cards away so is the temptation.
It sounds simple to say that you can help your debt by spending less, but reducing your spending can be a difficult habit to be in. Start with simple things that you can’t even figure out but can save your money. Lower the temperature on your oven by just a few degrees. Replace the standard bulbs you use most with energy-efficient fluorescent bulbs.
If you are currently doing your laundry at home with your own washing machine and dryer, consider replacing one of your home laundry days with a trip to the laundry. Drive the speed limit to gas. Run snacks around you to stop yourself from buying food when you’re hungry. Use these little money saving tips to start lowering your monthly debt. Use the extra money you save to apply to start paying your installments.