3 Responses to “what is the best way to pay off my credit card debt?”
Anjell on
November 27th, 2009 5:04 pm
I’m gonna be realistic with you, unless you have some other means you probably need some of that $3000 in the bank to live on.
If this is the case, don’t leave yourself high and dry, you still need to eat. What you can do is pay down 50% of the debt right away. That will lower your debt to income ratio and also lower your usage which both are currently hurting your credit score.
In the interim keep paying your balance down but definetly more than the minimum, double it if you can.
MamaJenkins on
November 28th, 2009 4:43 pm
That depends. How much is your savings account earning? Are you paying out more interest than you’re accruing? If your like most people, the answer is yes. I would say leave a $1,000 cushion in your savings. Make a $2,000 payment on your credit card. Make a $400 payment in Aug and Sept. Then make a $200 payment in Oct. You credit card will then be paid off and you’ll still have some cash in the bank. That way you’ll have no credit card payment for Nov and Dec. Use cash to buy Christmas presents. Then start building your savings again at the beginning of the year. Once that card is paid off, there’s a huge temptation to use it. But, DON’T.
Mike K on
November 30th, 2009 7:48 pm
Each month when you sit down with your bills you may be worried about how you will ever get out from under your mountain of credit card debt.
I’m gonna be realistic with you, unless you have some other means you probably need some of that $3000 in the bank to live on.
If this is the case, don’t leave yourself high and dry, you still need to eat. What you can do is pay down 50% of the debt right away. That will lower your debt to income ratio and also lower your usage which both are currently hurting your credit score.
In the interim keep paying your balance down but definetly more than the minimum, double it if you can.
That depends. How much is your savings account earning? Are you paying out more interest than you’re accruing? If your like most people, the answer is yes. I would say leave a $1,000 cushion in your savings. Make a $2,000 payment on your credit card. Make a $400 payment in Aug and Sept. Then make a $200 payment in Oct. You credit card will then be paid off and you’ll still have some cash in the bank. That way you’ll have no credit card payment for Nov and Dec. Use cash to buy Christmas presents. Then start building your savings again at the beginning of the year. Once that card is paid off, there’s a huge temptation to use it. But, DON’T.
Each month when you sit down with your bills you may be worried about how you will ever get out from under your mountain of credit card debt.
Learn more on How to Pay off Credit Card Debt