Getting Out Of Credit Card Debt

Paying off credit card debt can take decades for many people, especially those who only make minimum payments. However, many people are surprised at how easy it can be to find extra money each month to tack on to their credit card payment and how fast they can get out of debt.

Assume your credit card has a balance of $2,000 and an interest rate of 19%. The required minimum monthly payment is typically going to be around $40. If you pay just the minimum each month, it will take nearly 21 years to pay it off. However, if you add just $50 to the minimum and pay $90 monthly, you will have the entire card paid off in 28 months!

That is just a little over two years! You will also save over $4,000 in additional interest payments.

If you have more than one credit card with a high balance, don’t get used to spending extra money simply because one card gets paid off. Instead, it would be best if you took the payment you made on a card now paid off and applied it toward other credit cards you may have. By doing this, you will get out of debt in a fraction of the time and will not have to make any lifestyle changes.

For many, especially those on a budget, the most challenging part about following this plan is finding the money to make regular payments that are twice the minimum required. However, you might be surprised how easily you can come up with an extra $40 or $50 a month just by holding off on unnecessary purchases, using coupons, comparison shopping, and saving energy in your home (cutting off lights and televisions), or eating out less.

Thank you for reading and hope you have a good rest of the day!

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