First of all, you need to get organized in order to overcome this challenge, which is really only paperwork, arithmetic, and perseverance mixed with a little self-sacrifice. Clear a working space on a desk or table and designate this area as the spot where you will put your credit card debt help plan in motion. Take every invoice, bill, receipt, and document you have that pertains to your finances and place it in neatly labeled folders, clearly indicating where your documentation for rent/mortgage, car payment, car insurance, cable TV, and all of your individual credit cards is located.
Make sure to include every bill you receive that you must pay every month. Keep these documents neatly organized in a file or wire holder so that they are easily accessible and remain in tidy order. Next, the simplest way to see where you are as far as income, expenses, and debt is to make a chart or spreadsheet. First, list your monthly income. Let’s say it’s $3,000 per month buy VCC with crypto . Now we need to know what your total expenses for the month will be, not including your credit cards. From your folder titles, create a chart of columns listing these expenses. Make sure to include expenses that are not monthly invoices, but expenditures you make at the drugstore, grocery store, movies, and restaurants – if you’re not saving all those receipts, start doing so and put them in the appropriate folder from now on. So, let’s say your expense column adds up to $2,500 you pay out each month.
By simple arithmetic, you now know that you have $500 left each month to start paying off your credit cards. But you need a focused plan to use that $500 wisely in order to get out of debt the quickest way possible – and that’s what this credit card debt help plan is all about. Now, make a financial statement of where your available cash is now – how much is in your checking account, savings account, piggy bank, and your pocket. Include your assets such as your savings, IRA, or 401K plan money, but unless you are in severe, dire straits, you should leave those funds untapped. This credit card debt help is based on paying off debt with your income – without depleting your assets. Now here’s where the credit card debt help comes in. You need to break that $500 down into how it will help you the most and the fastest to get out of debt. Make another chart.
What you want to see is three columns next to each other – a listing all of your creditors, a listing of what you owe each one, and a listing of your monthly payment due to each. Add up what your total minimum monthly payment will be if you pay each card on time. If that figure is under $500, you are in good shape. If it’s over $500, you need to cut back some of your expenses – spend less at the grocery store, buy bargain brands at the drugstore, suspend your cable service. If you are going to take advantage of this credit card debt help, you must make some sacrifices and make sure you have sufficient funds available to pay at least the total minimums due.
One of the biggest factors people don’t account for is the interest rates, so this credit card debt help plan points them out directly to you – insert a column next to your list of creditors that shows the interest rate for each credit card. This forces you to read the fine print of some of your statements. Make notations on your chart or spreadsheet of when the low introductory rates conclude, what the new rate will be, and what your highest interest rates are now.
What you truly want to avoid is penalty payments. Bear in mind that your credit card debt is not secured by collateral like your mortgage loan is with your house. Therefore, the credit card companies have severe penalties for debtors who do not pay at least the minimum on their cards. Keep a close eye on credit limits, due dates, and minimums so that you don’t incur penalties that damage your credit score. You also want to keep paying regularly so that the credit card company does not raise your interest rate, and you begin to incur more debt even if you’ve stopped using the card!
This credit card debt help, if followed precisely, will also keep you on track so that you don’t get yourself into a position where you can’t meet the payments on any of your debts and have to declare bankruptcy. However, if you do reach the point of no return and must create a clean slate with a declaration of bankruptcy, be aware that though the debt is gone, a bankruptcy on your credit report will affect your score for years and could also have a negative result when you apply for loans or even a job. You can now conclude that the fastest way out of debt is to pay of the card with the highest interest rate first. From the $500 you have available, pay only the minimum on the low interest cards, and use the rest towards the high interest card, e.g. pay $50 each on three of them if possible and $350 on the high interest card.
Follow these credit card debt help instructions for pay off, and you’ll find that once you’ve eliminated the payments to one card, you’ll have that much more to pay off the next card. Using the illustration above, say you pay off the big interest card in six months – now you have $350 to add to the next card, so you’ll be paying that one off at $400 per month. By the time you get to your last card, you’re devoting the full $500 per month to that last card!