- Make a budget. A budget is critical for all types of financial planning. Read this article at Investopedia.com to learn six reasons why you NEED a budget – whether you have debt or not. Bonus Tip: Put your credit cards away in a safe place so they’re not easily accessible when you’re tempted to purchase something not in the budget.
- Devise a strategy. Our strategy was to transfer our balances to a credit card that was offering zero interest for 18 months. While that may not be an option for you, learn about other debt management strategies in this article at credit.com.
- Pay as much as you can each month. Did you know that it will take 10 years and $1,014 of interest to pay off a $2,000 balance with a 10% APR if you only pay the minimum payment? Use this Credit Card Repayment Calculator on The Dream Big Site to figure out how long it will take to pay off your balance. The more you pay each month, the less time it will take and the less interest you will pay. Bonus Tip: Put any extra money you receive from gifts, bonuses, etc., toward your debt to pay it off even faster.
- Don’t give up. Getting out of debt takes time and perseverance.You may get frustrated, but do your best to remember how much brighter things will look when you are no longer weighed down by debt and can instead focus on the future.
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