How to Pay Off Credit Cards & Debt

Some college students fall into credit card debt, feel guilty and worry all the time about money and their debt. College students have enough to worry about... find out the most efficient way to pay off credit cards tips below.

Step 1: Figure out how much credit card debt you have.

Step 2: Stop Using Credit Cards... which can be tough, but you can always leave your credit cards at home so you are not tempted to rack up more debt.

Step 3: How to Pay off one Credit Card
Create a budget and pay as much as you can on your credit card each month. The more you can pay over the minimum the better because it pays off the balance, where a portion of the minimum payment only pays the interest.

Step 4: More Than One Credit Card... Look at the balance, interest rate, and minimum monthly payment for each card. Sort your credit cards by the interest rate (high to low).

1st way: Pay Off High Interest Credit Cards First... Make only the minimum payments on all of your other cards, and then pay as much as you can on the card with the highest rate. After the first card is payed off, attack the credit card with the next highest interest rate the same way, and so on until all cards are paid off.

2nd way: Snowball Payoff Method... this less popular method say to pay off the credit card with the least balance first, so you get that sense of accomplishment quicker, and then you can divert extra money towards the next credit card.

3rd way BEWARE!
Don't Sign Up For Any Additional Credit Cards
Can apply for a new college student credit card and transfer your balance over to the lower rate card. This could work, but but most student tend to transfer the balance and then rack up even more debt on both cards. The plan is to pay off debt, not increase it so be careful.

This tip was found at last accessed June 29, 2009.
Allison Curbo, J.D.
タグ: cards, credit debt, students
29-06-2009 14:24 投稿 | 0 コメント | お気に入り登録数: 0 件 | 不適切として 0 回マークされています


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