How to power down your debt NOW : Action Plan

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Action Plan: How to power down your debt NOW

It will take an individual normally between 25 to 30 years to pay off your credit card at the minimum amount. This will not do.

Make a list of all of the credit cards (including all of consumer debt for example doctor payments, furniture stores plus your home).

Record the following in columns: the type of charge card, principle amount, regular payment amount, power down payment, interest rate, total number of payments remaining on the card, believed payoff date. Put your list in order of the amount of payments remain from least to most. If you make a minimum payment of $55/month on one of your cards until it's paid off in full, you then have $55/month freed up to add to the minimum monthly payment for the next credit card. After you pay off the next card, the amount you were paying on that one may be used toward the third card. Using this method, you'll decrease the period of time required to pay off your credit cards from approximately 30 years to nine years.

Making use of this strategy, take into account the different ways you'll unencumber money. If you spend about $100 at Starbucks monthly, think about paying that money toward your credit card obligations.

Remember, finances are emotional. We spend and make money based on emotional compulsion. Go back and see what you spent money on during the last week and how much you spent. It’s not how much cash you make that matters, but how well you manage it that counts.