If you want to get out of credit card debt without using any type of debt relief program such as debt consolidation or debt negotiation you have to pay more than the minimum on your credit cards.
But you know this already right?
If you took the time to calculate your debt payoffs then you’ll understand why it is so important to pay off your debts quickly. If you want to avoid paying thousands of dollars in interest charges to your credit card company you need to pay much more than the minimum.
I’ve been doing this a lot more lately.
When I get my Discover Card statement in the mail, the only transactions I see are my finance charges and several payments that I’ve made to them.
For the past 3 months, there has been at least 3 payments made for each month. Two months also have me making 5 payments. And the amounts I am paying are not huge either.
These are payments I made for the month of May for example:
Those are the small ones, then there was a couple of bigger ones:
The minimum payment for May was only $76. I paid over $567. Hopefully, in just a few short months, I will finally get this card paid off once and for all.
Whenever you get any extra money I would suggest sending that to your credit card company before it has a chance to burn a hole in your pocket and get spent on another frivolous purchase.
When you keep hacking at your debts and making credit card payments several times a month, you always have the thought of getting out of debt in mind and it helps to control your spending in a way.
You get in a more frugal frame of mind which is required for paying off huge credit card bills.
If you need more tips on how to be frugal and reduce your spending, check out this post from Zen Habits that offers 50 tips for frugal living
Keep hacking away at your debts and we’ll talk soon.
Have a great day!
Adam – The Credit Blogger