7 Tips – Getting Off The Credit Card Treadmill

Ever wondered if you’ll be free of those credit card payments?  Do those payments linger around like  a friend who has long worn out their welcome?  Below you will find 7 tips that will help you put an end to credit card debt.

1) Have an Emergency Fund.  One of the reasons folks use credit cards are for emergencies.  The car breaks down. The dryer stops working.  Having a minimum of $1000 in your emergency fund allows you to handle these expenses without going to the credit card. 

2) Stop Charging.  You simply won’t get ahead until you do this.  Implement number 1 and you can accomplish number 2. 

3) Pay More Than the Minimum.   Paying more allows you to do 2 things: 1) Pay the credit card off much faster; 2) Saves you hundreds of dollars in interest paid.  Below is an example of the momentum you can have by following this practice:

$5000.00 Visa Balance, 13% apy, paying the minimum payment $100.00. Result: Pay it off in 6 years, pay a total of $2, 123 in interest, total amount paid: $7,123.00!

Same as above except paying $200 month (100 extra) a month.  Result: Pay it of in 2 years, 5 months, $788,98 in interest, total amount paid, $5788.00! 

4) Buy Needs, Not Wants.  We need food, clothing, and shelter. If your current appliances and cars work, you don’t need the newest version.

5) Pay with cash.  Dave Ramsey says we pay 18% more when we purchase with plastic.  Watching real money leave your hand makes you a wiser shopper.

6) Don’t take them with you.  You can’t use what you don’t have. 

7) Cut them up.  Enough said.

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