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Everyday cheapskate: Here is a plan to repay your credit card debt

Facing your debts can be depressing for several reasons. First, all the stuff that caused the debt is not so wonderful and new as it used to be. And the interest rates ... Yikes! But the worst, the all-time most horrible thing about facing debt is the realization that given the present rate of repayment, that monster is going to hang around and invade your life like a huge family of free-loading relatives, for a very long time. That’s the bad news.

The good news is that you don’t have to spend the rest of your life aimlessly chipping away at that mountain of credit card debt. You can fast track your debt repayment and get out in record time. It takes a plan, a good strategy and determination.

Here is a plan for wiping out your unsecured debts in record time:

  1. Stop adding any new purchases to those credit accounts until they are at $0. If you don’t start with this first step, the plan will not work.

  2. Add up the current minimum monthly payments. Let’s say for illustration purposes that you have three credit card accounts and this month the three minimum amounts you must pay total $367. Determine that you will pay this same amount ($367 in this example) every month, even if your creditors reduce your minimum required payments as your balances decrease.

  3. List your debts in order according to the number of months left to pay them off. For example, a debt to a department store of $80 with minimum monthly payments of $40 has about two months left. That one goes at the top of your list, with the others in order below.

  4. As one debt is paid, apply its monthly payment to the next. Using our example above, that first department store debt will be paid in two months. What then? Should you take that $40 payment and go blow it on that great blouse you’ve been ogling? No way! You’re going to send the $40 to Debt No. 2, along with its regular minimum monthly payment. Increasing Debt No. 2’s payment by an additional $40 each month is going to get it completely paid off much more quickly, to say nothing of shocking the creditor right out of his mind. Then, when Debt No. 2 is paid, apply the $40 plus the old payment from Debt No. 2 to the next debt. And on and on until every single debt is at a $0 balance. Every month you pay the same total amount ($367 in the example above) toward your debts. Of course, your number will be different, as $367 is only my example.

Want an automated way to do this? See my Rapid Debt-Repayment Calculator Demo at DebtProofLiving.com. This a calculator that members of my Debt Proof-Living Family use to simply input the information on their credit card and other unsecured debts, hit “Submit” and the calculator creates their entire payback schedule. It’s amazing. Use the Calculator and you’ll know the exact date you will be free of those debts. The average time is 24 to 36 months.

Paying off your credit card debt is going to give you a new outlook on life. Just imagine what you’ll be able to do when you no longer have to make those big monstrous payments toward that high-interest debt!

I know you can do it, and can’t wait to hear that you have.

Would you like to send a tip to Mary?

You can email her at mary@everydaycheapskate.com, or write to Everyday Cheapskate, P.O. Box 2099, Cypress, CA 90630. Include your first and last name and state.

Mary Hunt is founder of www.DebtProofLiving.com.

To find out more about Mary and read her past columns, please visit the Creators Syndicate Web page at www.creators.com.

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