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Shorten the time for Paying off Credit Card Debt and Save Money

February 14th, 2006

Shorten the time for Paying off Credit Card Debt and Save Money

Calculator

Have you ever thought what if I would pay just $10 more each month would it really pay off my debt that much faster?  What you will find is that every dollar does count.  The sooner you pay off your credit card debt the sooner you stop losing money on the interest you are paying on the credit card.

If you are faced with credit card debt, it is not an easy thing to even want to address.  However, once you do start to address the problem and see the results, the better off you will be in the future.  Every time you donít pay off your credit card debt you are increasing the amount of interest that you will have to pay off.

It may be extremely difficult to make the minimum payments and in previous articles I talked about how you can budget to stretch a couple extra dollars to help pay off the credit card debt.  I also have talked about transfer deals and how to lower your credit card interest rates.  These are two strategies that you should use to get you to the ultimate goal of paying off the debt as soon as possible.

 

To create a roadmap for your success and to help you to feel like you are accomplishing your goal you should keep a financial diary of income and expenses.  Keep a list of credit card debt that you have, the interest rates and the minimum payments and the amount you actually pay.  To boost moral you can go online and enter in the credit card debt information into a credit card debt calculator to see how much time it will take to pay off as well as the amount of interest that you didnít pay on the debt.

By visiting the online calculators, it is like having a personal financial.  If you did go to a financial advisor to help you get out of debt they will likely have the same kinds of calculations that these online calculators will do.  The online calculators, however, are free.

 

Letís say that you have $5,000 in credit card debt.  The minimum payment is $150. If you were to pay just $10 more a month at $160 you would shave 4 months and $164.59 interest payments off of the 46 month pay back period.  This may not be much but the reality is if you become motivated to pay off more than the minimum payment you will reach your goal of getting out of debt sooner and will save money on interest payments.  The bigger the debt, the more interest you will pay in a shorter time period.  The more your debt the more critical it is to get out of debt because the amount of interest you will pay in the same time period can truly be a big expense.

 
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By Nicole Wilson
Best Syndication Staff Writer

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Copyright 2005 Best Syndication                                            Last Updated Saturday, July 10, 2010 09:47 PM