Paying Off Credit Card Debt

January 21, 2015 § Leave a comment

credit cards

A typical New Year’s resolution is to pay down/off debt. If this is your 2015 goal how can you do it? Here’s some ideas to help you succeed.

Choose your strategy – Do you want to pay on the card with the highest interest or the card with the lowest balance? You decide, but from an emotional satisfaction perspective, choosing the smallest balance and aiming to pay that off gives your goals a huge boost because you can actually PAY  A DEBT OFF in a timely fashion with that method.

Additionally, do you want to aim your extra cash towards ONE credit card or pay the extra $300 equally towards all? That, too is a decision that you make. Though I would once again suggest that focusing on ONE credit card could provide quicker satisfaction by achieving your partial goal by paying of a few smaller cards with laser focus.

Simultaneously save? – What about simultaneous saving? Some folks discourage any but TOTAL focus on all extra money going towards repayment. But that leaves you nothing for the next broken appliance fiasco or car repair. So I think saving for both long-term (retirement) and short-term (emergencies) is an important disciple in this time. My suggestion would be to save small amounts as the bulk of your funds are paying off debt. But saving at the same time would be great for your future.

Stop the madness– Of course, you need to not add to your debt while you are paying things off. It will hard to do that as there will be emergencies and life will not go as planned. But if you wait it out and look for alternative solutions to the immediate use of credit cards, things will open up and you will find perhaps a much better solution not seen in your past because of the pressure you felt to act NOW and use the card.

Good luck on this excellent goal. (CR10559)




Smart Girls Guide to Financial Bliss- Tip #10

September 16, 2011 § Leave a comment

10.)    Aggressively tackle debt- what this means is look at your unsecured, or consumer, debt. That means credit cards, student loans, car loans and the like.  Figure out with a computer program or with a web calculator, how much you’d have to pay to have that debt paid off in 2-3 years and maybe sacrifice to get that done. You’ll feel pretty free, little bird, pretty darn free.


The Ten Commandments of Finance: Commandment VII Expect the Unexpected

June 9, 2011 § Leave a comment

7.)  Expect the unexpected

 Things change. Be it bumps in the road with your plan. You’ve seen enough of life and had enough experience to realize that your very good plan of using this particular check go towards paying down the credit card may get sidelined. Maybe the car and the refrigerator break or your daughter needs special sports paraphernalia tomorrow and forgot to mention it.

 Eventually, if you persist in doing good, the money will go to pay down debt and you will have more money saved for retirement. Don’t be too quickly discouraged.

 Sometimes the fork in the road may be an entirely new road, a new way of thinking about mortgages or investments, as new instruments are developed. You don’t want to assume new things aren’t bad because they are ‘new fangled.’  Cars , computers and texting were new for someone.  Instruments you, or your parents, didn’t know about previously doesn’t automatically make them bad.

 Learn what you need to know, be open, concerning the new things so you can have options about different ways to save for retirement or get a mortgage.

 The lesson here? Be flexible and expect the unexpected.

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