After mounting up loads of debt and struggling to make my credit card payments, I began to dream of how my life would be if I could pay off my credit card debt. I would consistently day dream of how sweet and stress free my life would be after I pay off my debt. And not just pay off credit cards debt, but pay off my mortgage and pay off my student loan too.
No matter how much I dreamed about what it would be like to pay off my credit card debt, until I took action, nothing changed. Hopefully what is written below will quickly teach you some techniques on how to pay off credit card debt.
Gathering The Facts – The First Steps To Learn How To Pay Off Debt
Make a list of all of your monthly expenses and the amounts of your monthly bring home pay. Look at your bank statements to make sure you have listed All of your expenses. Gather all of your latest credit card, loan and mortgage statements. You will need to know the following about each of your debts:
- Total amount owed on debt
- Your monthly payment to each debt
- Months you have left to pay
- The interest rate you are being charged
- Your monthly expenses excluding any credit card debt
- Your monthly take home pay
Add up the amount you owe (number 1 above) for each of your debts and this will tell you the total amount of your debt. Add up the monthly payments (number 2 above) for each of your debts and this will tell you the total amount of monthly credit based payments you make each month. Add together your total monthly credit based payments (number 2 above) and the total amount of your other expenses (number 5 above) and this will tell you the total amount you pay out each month.
From this exercise hopefully you will discover that your bring home pay (number 6) is more than all of your expenses and that you do have money to pay off debt. This puts you in a prime position to immediately jump on the strategies I will lay out for you. If you discover that your expenses are more than your bring home pay you will need to create a family budget plan so that you can quickly change this situation. But even if you don't find out that you have more expenses than money, you should still set up a family budget plan so that you can monitor your spending to pay off your debt.
Part II of the plan I used to pay off my credit card debt
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