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List down all your credit card debts and other loans. Prioritize it according to the highest interest rate debt. Pay first the credit card with the highest interest and start to live economically.
1. Do List your debts
You should know first how much deep you are in credit card debt. Many credit card holders are shocked when they know the total credit card debt to be paid. Most of them stop compiling their list But you have to know your total debt. List down lender name, date of debt, total amount to be paid and interest rate. Arrange list according to interest. High interest credit card debt first.
2. Pay Credit cards with the high interest rate
Start paying highest rate credit card first. Pay more often than the minimum amount. If you are addicted to minimum payment traps then you will hard be out of debt for your whole life.Banks have strategic minimum debt trap in such a way that a loan could take many years to be paid if you only pay the minimum amount. Always pay more than the minimum. These small extra payments will save you literally thousand dollars.3. Start Frugal Living
For as long as you are in debt, start frugal living. Cut off your credit cards. Ask companies to not offer you more credit cards. Try to save every penny if possible. These few dollars added to minimum payment amounts a snowball effect towards your credit card debt payments can create.
3 step formula to get out of Debt
