Erase Credit Card Debt

Debt Snowball

It's called the Debt Snowball and it impacts so many Americans in financial crisis today. But just as the snowball was slowly built up by adding layer after layer of credit card debt, mortgages and consolidations to it, it can be unravelled or melted one layer at a time. This process is not easy and it doesn't happen over night. It will take months, even years, of steady on-time minimum payments to make it happen. But, it can and must be done. The time to start, however, is not at the beginning of the year, or the first of next month, but now.

To start a winning pattern, make a list of all your debts and line list them with the greatest amount owed one at the top. Work your way down to the least amount one. Now, you're going to attack the bottom one first, the rest will simply be receiving minimum payments due. What you're trying to do is establish a success pattern. This will help keep you motivated and debt reducing focused. As you pay off one, take the money you were paying towards that bottom one and put all of that, plus the minimum payment and send it in to the next one on the list, working your way to the top. The feeling of satisfaction you will get from crossing off each debt is exhilarating. They key here is to never add more debt to the sheet you're working from.

Many financial experts disagree with this plan because they feel that the credit card or debt with the highest interest rate should be paid off first. However, it's human nature to become overwhelmed at large tasks in front of you. By tackling your debts and loans in this manner, you're seeing more immediate results and remaining focused on your goals. You'll see your credit scores coming up, companies won't be calling you wondering where payments are and your overall quality of life will improve. Become students of a cash only society. Learn how credit can ruin, not enhance your life and you will no longer be a slave to the interest rates and whims of the credit industry.

Erase Credit Card Debt