How Can I Aggressively Pay off Debt?
I know what you are thinking- you just received your most recent credit card bills and they just don’t seem to be decreasing. You pay the bills on time and sometimes pay a little extra as well. Aren’t you doing the right thing? The answer is yes- but if you want to get those high balances down, there are some quick and easy methods to aggressively pay off debt.
Making small victories keeps your momentum going. If you have multiple credit cards with various balances:
a. List out your debts.
b. Make minimum payments on everything except for the smallest debt! If debts have the same balance, put the debt with the higher interest rate first.
c. Pay extra on your smallest debt. Try to make double, if not triple on that one debt until it’s paid off.
d. Move onto the next smallest debt.
e. Repeat until all debt is paid off.
Similar to the Snowball Method, the Avalanche Method concentrates on one debt at a time but tackles the debt with the highest interest rate first. Once the first card is paid off, then you move to the next card with the highest interest rate.
If you are tired of paying on multiple cards, the easiest way to have one payment is to consolidate everything into one low-interest credit card and consider making double the minimum payment. Making the minimum payment will only get you so far. Yes, you are avoiding late fees and keeping your account in good standing but that’s it. Most of the time, you are paying only the interest that was charged- getting you nowhere near paying off debts. Sticking to the Snowball or Avalanche Methods are a great way to pay off debt successfully.