Credit card debt is one of the biggest problems most people face when trying to get a handle on their finances. Credit cards make it easy to spend more money than you have, and then the crippling interest rates and fees make it seem impossible to get out from under. While there isn't an instant cure for credit card debt, there are steps you can take to put yourself on a path to becoming debt free.
It takes a little planning, a little budgeting, and some time, but if you keep at it you'll find that you're getting out of debt faster than you had imagined. Here's the process to help you eliminate your credit card debt.
It’s good advice to pay off as much as you can from the credit cards with the highest interest first. Common sense really, but it’s surprising just how many people overlook it.
I put a spreadsheet together recently that demonstrated a budget that paid off some credit card debt and saved some money each month. For comparison, I created another spreadsheet, this time using the same figures, but all the monthly payments went straight to the credit card until the balance was cleared, and only then did the savings payments begin.
Result? Paying off the credit card debt first yielded over 20% more savings in the same time frame. I think people underestimate just how much credit card debt is costing them!