Shorten the
time for Paying off Credit Card Debt and Save Money
February 14th, 2006
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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 don’t 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 didn’t 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.
Let’s 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.
By
Nicole Wilson
Best Syndication Staff Writer
Books on
Lending
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