The Credit Card Debt Pay Off

The Credit Card Debt Pay Off

by E.S. Cromwell

There's a difference between taking control of your finances and letting your finances take control of you. The results vary, of course, but when finances - particularly financing involving credit cards - are taking control over an individual, debt is the awful and too familiar end result. Yet, at the same time and conversely so, one of the most tangible financial issues anyone can easily take complete control of, conquer and even, dare I say it, pay off, despite popular belief, are substantial amounts of credit card debt.

Don't Get Caught Up and Give Up

The worst thing a credit card indebted individual can do is get overwhelmed by their credit card debt, subsequently leaving it to sit and linger. This is major financial mistake number one; do not sit on credit card debt. You're not a hen and your debt is not an egg. Leaving credit card debt to stay stagnant and hence, accrue interest, is blocking off a clear path to future life options, particularly ones calling for polished financial standing. Financial goals such as buying a car or even owning a home could be jeopardized if credit card debt is not dealt with immediately and in a well-done manner. Bad credit means difficulty for anyone seeking upcoming and monumental purchases.

Doing Well Means Getting Organized

Firstly, you must get your, well...stuff together. Despite the mess, gather all the credit card information and place it down on a table, a big, long table. You must then be prepared to tally the necessary information needed to see just how bad a credit card debt scenario is. Take note of balances due, the actual due dates and the payment amounts required (both minimum and higher payment options).

Factor in if you have multiple balances -like most individuals do- on different cards. What are the balances like? Are there a few smaller balances and one large balance, or vice versa? If so in either case, then you might be in need of some consolidating, simply to make some sort of headway on those due credit card payments.

Making headway on payments though, can be a curious event, simply because there are numerous options one can take. Regardless of which option is selected in the end, some progress is assuredly being made in lessening your debt.

Highest APR Balance Pay Off Option

This makes the most monetary sense, paying off the credit card balance with the interest rate which hurts the most, financially speaking. Take all your multiple balances and pay off the one with the highest APR rate first. Do this until the highest balance is paid off in full then move to the other lower interest rate balances and continue paying them off until each is erased from your financial history, not to mention, memory. Paying off balances this way will take some more money, but stick with it. A great rule of thumb to stick to is paying more than the minimum requirement, even doubling or tripling the amount (when your budget can. Holding strong to such a plan will completely eliminate credit card debt.

On The Other, More Budget-Inclined Hand

Paying off the lowest credit card balance is a great way to ease into paying off credit card debt. Doing this will take longer, yet will provide capability to gain financial endurance (not to mention responsibility), in this case, stamina, to pay off debt slowly but surely. Once the lowest balance is paid off, then it's just a matter of moving onto the next lowest and so on. Think of numbers and figures here. You've got three balances, each varying in financial weight. One is $5,000, the second $2,500 and the third $750. Clearly the third amount is the best option, especially if money is tight and financial stamina is weak and in need of strengthening.