How I'm Paying Off My Credit Cards

11

Debt is a burden

By: Michael Cannon

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A recent email discussion, lends itself to a talk about paying off credit cards.

Peichi and I are getting debt free. It's amongst the most hardest, but most feel good financial thing we've been working on. We've each gotten a couple of credit cards finally paid off and are working onward.

For me, I work on paying off one specific personal and business card at a time. I pay all of my credit cards minimum due and then fire as much of my spare funds I can afford towards the lowest balance card. Once that card is paid off, I move onto the next lowest balance card.

I'm even breaking down and playing the 0% balance transfer game because finance charges really do add up and hurt the bottom line of the business and personal profit and loss. My finance charges so far this this year could cover my mortgage for 3 months.

In figuring out my business spare funds, I budget out my monthly business expenses, and then whatever is over $ 2,000 in the business checking, that gets pushed to the lowest balanced credit card.

I used to go after credit cards with highest rate or shotgun, but that's like pissing in the wind. All wet, smelly, nothing to show for your effort, and no one wants to be around you.

It's so cool to know that almost every month I'm paying off or knocking down 25% to 50% of a credit card's balance. Soon though, the big balance cards are coming up and it'll be challenge to see draw down on them. However, I'm focused on being debt free and even those will be paid off as well.

If you're looking for help in getting debt free and would like some tips and inspiration, then I strongly recommend you read www.getrichslowly.org/blog/.