DO ALL YOU CAN DO TO ELIMINATE CREDIT CARD DEBTGene Jolley is helping people to enjoy life by teaching them a system to eliminate credit card debt. Debt in general is a curse but the worst type of debt is revolving credit card debt. Gene will show you how to create a financial plan that will give you control over your future. Society has taught us that using credit cards to get what we want is okay. The toy manufactures create toys that teach children to spend in plastic instead of cash. After all carrying cash is dangerous, and who likes righting a check instead of scanning a credit card? That is a joke! There are a lot of psychological factors that go into making a purchase, using cash out of your pocket is the best restraint you can have. Stores know that when people use credit cards they tend to spend more, this is even true for debit cards. Use cash. Credit cards should only be used for an emergency! Here is a suggestion take all your credit cards cut up all but the one with the lowest rate, take that card and put it in a zip lock bag fill it with water and put it in the freezer. When you get the urge to use it you will need to let the ice thaw, this will give you time to think about your need for the item, nine times out of ten you won't need it. Eliminating credit card debt is easy with a plan that is why you are reading this article. Here is how to eliminate credit card debt very quickly. Get a sheet of paper and draw five columns. First column is for the name of the debt, second column is the balance, and third column is the current minimum monthly payment. The forth and fifth column is a little tricky, in the forth column divide the balance by the minimum payment, do this for all the debts listed. In the fifth column you are going to prioritize the forth column, using the lowest answer as number one. Once you have these prioritized from one to??? This becomes the debt payoff priority. Please see examples below. It is important to note that to eliminate credit card debt the fastest you must stop using them. Also in the plan that you just created you will need to continue to pay whatever you are paying this month on each debt until the debt is paid off. The next step to eliminating these debts the quickest is using debt stacking. Once one debt is paid off you take the money that was going to make its monthly payment and apply it to the next debt in the order that was setup.
You can see that I included more then just credit card debts. This method will eliminate all types of debt. Next we will show you how to do the debt stacking, but first let me explain why we did not include the interest rates. The interest rate does not matter! This mathematical principle eliminates debt so quickly that it does not matter what the interest rates are. Let's now take the debt payoff priority and see how we to eliminate all types of debts very quickly. Lets redraw that list and put the debts in order of payoff priority
To see how debt stacking works we need to add a two more columns Column six – new payment - this column will be the new payment as each debt is paid off. So, when the credit card is paid off and we take the 100.00 dollars that was going to make that payment we apply it to the car payment coming up with a new payment of 426.00 when the car is paid off we take the 426.00 that was going to that payment and apply it to the visa so that we are paying 586.00 to the visa, and finally take the 586 and add it to the house payment for a new payment of 1867.00 until all paid off. Column seven – months to payoff – to calculate this column take column (2) and divide it by column (6) this gives a good idea of how long it will take to pay that debt off with a constant payment.
This whole process to eliminate credit card debt can be accelerated by adding a little extra to the new payment. The only caution is to apply it to only one debt, another words don't pay a little extra on each debt but focus on paying one debt off at a time. This is called debt stacking. The Rapid Debt Reducer Software was designed to do this for you and show you how much money will be saved instead of debt consolidation. SoLongBills.com is a key resource in providing up to date financial resources to eliminating debt and living life better Avoid debt consolidation at all cost until you have reviewed my method of reducing debt! Eliminate credit card debt in less then half the time. WE SHOW YOU HOW | |
