For those of us in the real world, you've probably had a few bumps in the road. I know I have. There are some things that I have done, that I should have known better. After all, I've worked in Financial Services for over 30 years, and I am a Chartered Life Underwriter. All I can say is we live and we learn.
Some writers and so-called experts will tell you pay off the ones with the lowest balance and then put that money towards the next one and so on until it's paid off. I took a different approach.
First, sit down and on a piece of paper list every bill you have. Make four columns (Name of creditor, balance, interest rate, and minimum payment). Now that you've done that, have a drink! You've just completed the hardest part!
Look at the bill that you have that has the highest interest rate.
For Example: ABC Mastercard - $2814 bal. - 22.47% APR - $45 min pmt.
Think about this, they are charging you more money than any other piece of credit that you have. Can you work it into your budge to pay $114? I paid off credit cards using this approach. I would pay $50 or $100 payments + the interest being charged every month. Within 2 years I was out of debt.
Think about it, try a new approach!
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