Friday, 10 April 2009 08:58
Put off saving until your credit card debt is paid off. It’s easier to focus on one thing at a time, and paying interest on cards will really hurt your saving potential.
Work on reducing debt starting with the highest interest rate loan or credit card. Reducing that debt by just $1,000 can save you a significant amount in interest.
After paying off one debt, use that payment amount to work on paying off the next highest interest rate loan or credit card. Try to pay more than the minimums on all your credit cards even if you are working on eliminating another debt. Pay with cash instead of credit cards to ensure you don’t increase your balances at a greater rate than you are paying them off.
If you have paid at least the minimum on your cards for a year, you can try to have the credit card company reduce your interest. If you are in good standing, they are more likely to lower the rate.
You can do it, just check out this local couple who paid off $60,000 in credit card debt: