Use Extra Money to Pay Credit Card Debt
If you have your choice between saving money and paying down credit card debt which direction will you go? Unless you are earning more in interest than you are spending on your credit card, it would be in your best interest to tackle the debt first. Most people don’t realize this, but it is 100 percent true. This is definitely the case when it comes to credit card debt.
Extra money should be put towards credit card debt. The more you put towards this the quicker you will pay off your debt. At that point, you can then begin to save more. Even though it may not be the most exciting thing to do, it makes the most sense to knock out credit card debt before you begin to save loads of money.
Of course, there is nothing wrong with doing a little bit of both depending on your situation. For instance, if you have an extra $3k every month you can put $2k towards credit card debt and save the rest. How long it takes to completely pay off the debt will be based on your overall balance.
Even if you cannot put large chunks towards your credit card debt you must still make progress. Anything you can afford to pay above and beyond the minimum will move you forward at a faster pace; a few bucks here and there can go a long way.
Use extra money to pay credit card debt and you will be surprised at how quickly your balance comes down. Saving is a good thing, but not if you are facing a large credit card balance.
August 30th, 2009 at 12:22 pm
[…] credit card debt. Credit Card Debt Elimination – Eliminate Credit card debt forever. Paying Credit Debt – Using extra money to eliminate credit […]