Maintain your old Siemens Hipath system

Credit Card Debt: How to Get Rid of It

This method is simple, but requires some discipline.

First, you have to stop any new spending on your cards.

Second - you'll need to examine all of your spending. You'll need to know how much extra money you'll be able to put towards paying off your cards.

Credit card companies generally determine the minimum payment to be 2 - 2.5% of the outstanding balance. So if you owe $1,000, for example, your minimum payment will be 20 - $25 per month.

Some part of that $25 goes to the interest on the balance, some to pay off the actual balance. How much goes where depends on the interest rate. Your credit card statement will give you the exact numbers.

Let's say that $20 of the $25 goes to the actual balance. To pay off $1,000 at $20 per month will take 50 months. Just over four years. You'll also have paid $250 in interest alone.

Here's how you pay them off:

Look at the interest rates on all your credit cards. Take the one with the highest rate. That's the one you're going to work on first and we'll call it card #1.

After examining your spending you may have found some money to put towards your payments. All of this extra money to pay off your card debt goes to this one card. The idea is to pay as much extra to card #1 as you can. Until it's paid off.

Pay the minimum balances on all the other cards until card #1 is done.

Then take the card with the next highest interest rate and add to its payment the total of the payment you were making to card #1. In other words, send the regular monthly payment you used to send for card #1, plus any additional amounts that you used to pay on card #1, plus the monthly minimum for card #2- all to card #2. Do this until card #2 is done.

Then take the total you were paying to cards #1 and #2 and add that to the payment on card #3, and so on.

Here's an example:

Let's say you have four, maxed out, credit cards. Each with a balance of $5,000 ($20,000 total.)

Say the minimum payment on each card is $100 (yours may be different) making your monthly minimum payment total $400.

Now let's say you have $500 per month to pay these off, which you found through analyzing all your spending.

Card #1 has the highest interest rate and you'll send $200 per month to that card and pay the minimums ($100) on each of the others.

And you're not adding any new spending.

The extra $100 you're sending in to card #1 goes to the actual balance of the card, not the interest. This will let you pay that card off a lot faster. You might be able to kill this card in two years, instead of 5.

Eventually, card #1 is dead. The entire payment, $200, that you were making to card #1 gets added to the payment on card #2, for $300 total. ($100 minimum plus the extra $200 from card #1.)

The balance on card #2 will be less than $5,000 since you've been making your minimum payments all along. Adding the $200 from card #1 to the payment of $100 that you've been making to card #2 will make this card go away much faster than the first card did.

When card #2 is gone you take the $300 per month that you were paying to #1 and #2 and add it to the payment on #3, which will now be $400/month.

When #3 is done you repeat the procedure for card #4, but now you're sending the whole $500/month to that one card.

Obviously this system will take years, but at the end of that time you have:

* Four dead cards (hopefully you cut most of them up,)

* Spending and budgeting discipline earned from going through the whole process, and

* $500/month to put into a savings account or where ever.

Good luck!

Greg has a degree in biology so, naturally, went into teaching martial arts. Now he builds websites on whatever topic happens to be of interest. For more articles on easing your credit card debt, visit Credit Card Debt Help.

In The News:

Warning: simplexml_load_file() [function.simplexml-load-file]: parser error : Document is empty in /home/infob/public_html/includes/rss.php on line 2

Warning: Invalid argument supplied for foreach() in /home/infob/public_html/includes/rss.php on line 9

Erfahrungen mit Pallhuber Wein
Agen Bola SBOBET Terpercaya

Travel in comfort and at your leisure with CT Airlink Limousine & Car Service for top quality private transportation and exceptional customer service. We operate Sedans, SUVs & Vans for CT Car Services to covering all Connecticut airports including Car Service from CT to Newark Airport , Mohegan Casino Uncasville CT, Foxwoods Casino Mashantucket CT, Manhattan Cruise Terminal NYC, Brooklyn Cruise Terminal NYC and Bayonne Cruise Terminal NJ. CT Airlink hire licensed and friendly chauffeurs who have in-depth knowledge of the Areas.

Budgeting and Debt Management

Debt management (specifically unsecured) is the first step to taking... Read More

Credit Counseling or Bankruptcy: Which is Best for You?

People often get to a place where they simply can't... Read More

How to Get Triple A Credit in 25 Days

Good credit is everyone's dream. A wise use of credit... Read More

A Debt Elimination Process Must Be Initiated From You.

The first and maybe most important step in a debt... Read More

5 Ways to Get Out of Debt

It has been said that everyday more and more people... Read More

Eliminating Credit Card Debt

The overwhelming task of eliminating your debts can often seem... Read More

The Credit Card Debt Termination Scam

"Legally terminate credit card debt! You can be debt-free in... Read More

Bankruptcy Interest Increases as Deadline Approaches

Congress recently passed sweeping legislation that will significantly reform American... Read More

Craving For Financial Freedom

Have you ever felt trapped in a Rat Race and... Read More

Bankruptcy - Is It The Right Choice For You?

Bankruptcy is one of the tougher choices we as adults... Read More

Eliminate Your Credit Card Debt, But How?

Can a debt consolidation loan eliminate your credit card debt?... Read More

Future Secured? Oh Really?

A headline for a retirement annuities flyer declares "Future Secured!"... Read More

Tips To Take Control Of Debt Collection

Yes, debt collection tips can help. You may think you... Read More

Learn The 15 Debt Elimination Steps You Must Take Immediately!

What Everybody Needs To Know...Learn The Truth About Debt Elimination... Read More

Tips For Saving Money

Still living from pay to pay? Or envying those great... Read More

How to Get Money When You Are Broke

(Money You Don't Have to Pay Back) 1. One way... Read More

Assess Your Financial Attitude and Eliminate Your Debt Forever

Want to know if your attitude towards your finances is... Read More

Get Debt Free

If you once have been caught in the debt trap,... Read More

Personal Bankruptcy: Last Option To Legally Stop Bill Collectors

Do you have stacks of unpaid bills?Are you in debt?Are... Read More

Bankruptcy Reform: Designed to Protect Big Business

Who will benefit from the new bankruptcy reform laws? The... Read More

Bankruptcy - The New Scarlet Letter

Nathaniel Hawthorne's book The Scarlet Letter states in Chapter 2,... Read More

Reducing Debt Before Its Too Late - How to Avoid the Pitfalls of Creeping Debt

Reducing debt usually isn't a high priority for people until... Read More

How to Deal with Bill Collectors

So you've screwed up. You're drowning in debt. Maybe the... Read More

The Road to Debt Relief

Living with debt is not something someone hopes for, but... Read More

How to Avoid Bankruptcy

Bankruptcy is a legal way to offer folks with high... Read More