I personally used this a number of years ago and it worked like a charm. To some this may not be new but 10 years ago it was new to me, and I was grateful someone showed me. Note: this works best if you have moderate debt, say, less than $5K on your credit cards.
1) Group all your cards together and figure out how much you owe on each one.
2) Pick the card with the lowest balance and pay as much as you can per month on it and pay the minimum on all the others. Even if you can afford to pay more on the higher debt cards, don't!
3) Once you've paid off the smallest debt card move to the next highest card. But here's the trick - whatever you were paying monthy on the first card, apply that amount also to the 2nd card. And still pay just the minimum to the highest cards.
4) When you get to the third card, apply the payments you've been making to card #1 & #2 in addition to the minimum on #3, and so on...
5) By the time you eliminate each lower card's balances your payments on the highest cards are getting larger and larger causing the balances go down that much faster.
6) Any purchases you make go on the highest balance cards.
Of course it's going to take time and discipline but I paid off almost $3,000 in credit card debt in one year this way on a measly little salary. And the beauty of it is, once the debt is paid off you can use this system for savings, since you already know you can afford it each month. Before you know it you'll be paying new card balances each month in full and saving a ton in interest.
Give it a try!
1) Group all your cards together and figure out how much you owe on each one.
2) Pick the card with the lowest balance and pay as much as you can per month on it and pay the minimum on all the others. Even if you can afford to pay more on the higher debt cards, don't!
3) Once you've paid off the smallest debt card move to the next highest card. But here's the trick - whatever you were paying monthy on the first card, apply that amount also to the 2nd card. And still pay just the minimum to the highest cards.
4) When you get to the third card, apply the payments you've been making to card #1 & #2 in addition to the minimum on #3, and so on...
5) By the time you eliminate each lower card's balances your payments on the highest cards are getting larger and larger causing the balances go down that much faster.
6) Any purchases you make go on the highest balance cards.
Of course it's going to take time and discipline but I paid off almost $3,000 in credit card debt in one year this way on a measly little salary. And the beauty of it is, once the debt is paid off you can use this system for savings, since you already know you can afford it each month. Before you know it you'll be paying new card balances each month in full and saving a ton in interest.
Give it a try!
