simplehomefinances

SHF BLOG

Tips and Tricks for managing your finances!

The easy way to payoff a credit card!

Credit card companies know how to keep you in debt, so you need to know a simple trick to get that credit card paid off.  Typically a credit card will provide a minimum payment amount, on the surface this seems right because you should make a payment on your debt every month. Did you know that minimum payment amount is calculated to keep you in debt for many years? In some cases more than two decades? So what are you to do?

First stop charging on the credit card, cut it up if you have to, then use the current minimum payment as your permanent monthly payment, so if the current minimum payment is $100 make that your budgeted monthly payment. This way you treat your credit card debt like an installment loan. Your card will pay off in a few short years saving you a great deal of money in the process and if you Prepay it will payoff even faster.