How to Pay off Credit Card Debt

Forex Millennium

Credit card debt can destroy your budget. Many people get into credit card debt over time by spending frivolously or because of an unexpected emergency. All of the sudden you open your credit card bill and see that you owe thousands and they raised your interest rate. Learning how to pay off credit card debt will save you thousands in interest over time. Lets get started on How to pay off debt collectors.

Create a Budget

The first thing you need to do to pay off debt is to create a budget. This needs to be a realistic budget. If you can not stick to your budget it is worthless so make sure you include entertainment.

Here is an excel spreadsheet you can use to make a simple budget to know where you stand.

Simply download the spreadsheet and add your information. The amount left to pay off debt is at the bottom of the sheet. Once you know where your money goes you can decide where you need to cut spending so you can pay off your debt faster.

If you find you do not have the money to pay off your debt you may want to consider the ebook you can download HERE.

What to pay off first

How to pay off debt collectors? The best place to start with paying off your credit card debt is with the highest interest. How to pay off credit card debt is simple. Paying off the highest interest rates will save you the most money.

What you should do is make the minimum payments on all of your cards. then you look at the interest rates and take your extra money that you can pay and send it to the one with the highest interest rate. Sending as little as an extra $20 to a credit card can save you $4 in interest charges over the course of a year. If you have 2 cards with the same interest rate start with the one with the lowest balance.

Paying off the lowest balance first will help you recognize that you are making progress. It will feel good to see the balance going down. Once that card is paid off take all the money you were paying on that card and move on to the next one. That is How to pay off debt collectors.

Fix Your Credit

Fixing your credit is the best way to lower your interest rate expense. Simply improving your credit by 50 points will make a major difference in your ability to refinance your debt to a lower interest rate. Get your free credit report at!

If you have issues on your credit report that need to be fixed click Here to learn more!

How to pay off credit card debt completed? Move on to other debt.

Once you credit card debt is paid off you can move on to other high interest debt. Personal loans, car payments and other debt that has an interest rate over about 4%. That number is an arbitrary number but it is not at the same time. When all of your debt you can afford a risk adjusted return of 8%. That is a college way of saying an 8% return long term is worth the risk of the debt.

When you have paid off all of your debt that has an interest rate over 4% you can begin investing.

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