Carmen's Strategy: Paying off Credit Card Debt
When you search for driving directions online, a good site will give you several options like “no tolls,” “quickest route,” or “avoid highways.” You have choices like this when it comes to paying off your credit card debt.
Now, I don’t know about you, but I don’t think it’s good advice to tell someone to take the time to enjoy the tree-lined roads on their way to becoming debt-free, please don’t worry that it takes so much longer. For me—and from what I can see also many, many of you—getting out of credit card debt was all about getting out hard and fast. I wanted the route that not only avoided tolls (or fees, in credit-card land) but also that got me to my destination as quickly as possible—a $0.00 balance.
That is exactly how my credit-card pay-off plan works, the one that continues to not only guide but also motivate many of you out of debt. Throwing the most money you can at your credit card balance with the highest interest rate while you pay minimums on all the others throttles some folks. They say, “Why not go for the satisfaction of paying of the smallest balance?” Hey, I never promised to give you the most comfortable ride. However, I will give you the quickest.
The difference between a ‘sentence’ of 15 years and $10,000 in interest payments compared to putting another $200 a month onto the highest-interest debt handing you only 2 years and $3,000 in interest is 4th grade math at it’s finest. I dunno about you, but saving 13 years and $7,000 sounds pretty darn amazing—not to mention satisfying and motivating.
There are times when it comes to emotion and money when emotion can win, but in this case, buckle up. I’m taking you on a fast ride to freedom.