What if you can reduce your expenses each month and raise your income? You could probably put another $500-$600 toward your credit card debts each month. Or finally ask for that raise they have deserved for some time. Do you really need it?Īnd they do whatever they can to earn money. Put together your monthly expenses and then question everything. They reduce their monthly expense as much as possible. How do people find the money to increase their monthly credit card payment? (Want a larger, more inclusive debt payoff tool? Check out The Best Debt Snowball Excel Template).Īnother great way to pay off your credit cards quickly is by paying more every month (in other words, raising your monthly payments). The credit card snowball method is best at that. The key is that you get started, stay committed, and polish off all the debt. So, if you commit and work to pay off your credit card debt quickly, the interest really shouldn’t matter that much. Then, you really feel like you’re gaining traction and put it into full gear-you pay off all your debts faster than you thought possible. You feel good about yourself-and quickly tackle the next credit card debt. Start with the smallest one and pay it off quickly. The idea is to gain momentum on paying off your credit cards. You might be wondering about interest rates-how do they play into this method? Quite simply-they don’t. Keep going with this process until all the credit cards are paid off. Then-when you pay that one off-move onto the next one. Once that’s paid off, pay the next one in line (the slightly bigger but new smallest debt). Start paying on the first (smallest) credit card. Line up your credit card debts from smallest to largest. What about the credit card debt snowball method? Just like the avalanche method, the debt snowball method is pretty simple. avalanche calculator.) The debt snowball method What did we model our credit card tracking spreadsheet after? (By the way, want to see the difference between the snowball and the debt avalanche method? Check out our debt snowball vs. ![]() (The highest interest debts cost you the most money each month, so pay those suckers off first.) But is it really the best option? Keep this going until you get to your last debt (the lowest-interest one) and pay that off to finish your credit card debt. Once you pay the high-interest debt off-move on to the next highest interest debt. Start paying the highest interest debt first. You line up your debts from the highest interest to the lowest interest. What is the avalanche method? It’s pretty simple, actually. But before we get too deep into the pros and cons-let’s be sure to define them. Some people swear by the snowball method.
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