Paying off your credit cards and other debt

In today’s economy we need to find ways to get financially stable as soon as possible. Credit cards generally have the highest APR’s and therefore take more of your money. You should try to get these paid off first. Start with the credit card with the highest interest rate and pay it off first. Once you pay that credit card off, use the money you were paying on the first credit card and add it to your monthly payment of your credit card with the second highest interest rate. You continue like that until all your debt is paid off.

To help this process along there are a few things you can do...
#1 Whenever you get extra money, don’t go out and spend it, put it towards what you have already bought!!! Extra money may be your tax refund, a bonus from work or birthday and Christmas money. I know it doesn’t sound like fun and you want to go out and spend it on you … but try thinking about it in a new way. You are spending it on you … you just bought the item already!

#2 With credit cards a good way to get ahead is to pay on it every week. We get paid once a week and started putting ¼ of the payment to the card each paycheck. To our surprise we found a difference within 3 months of paying this way. A lot of people don’t have enough money around to just start this up today, so maybe with your tax refund put it towards your bills to get one month ahead. Pay weekly on whatever you can …. This will help you pay off the debt sooner.

#3 A very good way to pay off your home sooner is, every tax refund you receive you put it towards your home. I have read studies that say if you do this you will pay off your home 7 YEARS earlier!!! But please check your contract and make sure there are no early pay-off penalties! You don’t want to get stuck paying penalties.