The Obama Credit CARD Act has been in place for a few months and as many adjust to the new information given to them regarding their credit card debt, few realize that knowing the specifics of your debt is the first step to getting out of credit card debt.
It may sound simple, but typically, the plain things are the main things in many areas of life and that goes for credit card debt as well. Knowing how much you owe, the timeframe which you are scheduled to pay off your credit card debt, and your interest rate is pretty much all you need to form a payment plan that will get you out of debt faster and save you money. Anyone that sits down and does the math will soon realize they are going to be repaying a lot more money than they have to when it comes to credit card bills.
Those with credit card debt tend to try to lump their debt together with a consolidation loan or by putting it all on one credit card, and while this may benefit some, simply forming a plan of attack and making a budget will make things much easier on you in the long run.
If you have small sources of debt, they may be easier to handle than a large source of debt and a common way of dealing with that debt is to attack one source of debt, or credit card, at a time.
Simply by setting a budget, sticking to it, and paying as much money as you can on one card at a time should work to your advantage. Many people only make minimal payments on their credit card debt and doing so is going to keep you in debt for an extended period.
However, by simple paying more than the minimum on a card you are going to not only get rid of that card faster, but you’ll have more money to pay on another card, then another, until you are debt free.
Again, using the information in the CARD Act, setting a budget, and paying off your credit cards more than one minimum payment at a time is going to get you out of credit card debt faster and save you money in the long run.