Paying off High-interest Credit Card Debts….
Many people have been asking me if they have lots of debt, what should they do and how? Today, I will share what is the first most important thing to do before starting to build and grow wealth……
To complete one’s financial portfolio is to have a plan to pay off the high-interest credit card debts.
- Take balance sheet you have prepared, and number all of your debts by the interest rate you are paying- State the highest as first, then following by the lower one.
- Write down how much you can afford to pay to reduce debt each month from teh salary.
- When you have strike a balance, cross the card off your list and put it in a drawer (do not use the card and not charge to it again.)
- Write down on paper- any bad habits that are draining the salary each month. Is it buying cigarettes? is it spending too much on online gambling? Streamline and reduce expenses.
- Continue this process until all of the outstanding accounts are paid-in-full.
The process is lengthy and may take months or even years. The key is to avoid making new extra expenses and find extra money to pay down debt faster. Having credit cards are not harmful after all. In fact, credit cards can be a valuable financial tool if used responsibly.
One should also consider speaking with a credit counsellor should one still have difficulties trying to follow a plan to pay off debt.