Question: I’m seeking help with credit card debt! How much extra money should I be paying on top of my regular debt payments?
Answer: Getting the financial assistance you need through a credit counseling agency is one way of learning some of the best practices on how to handle credit cards. But the truth is that you may not need help from any outside agency.
You will learn a great deal about your financial situation simply by taking the time to complete a personal financial statement and using this information to create a realistic budget that accounts for every dollar coming in and going out.
"The man who never has money enough to pay his debts
has too much of something else."
- James H. Aughey |
You may already be aware that paying only the minimum amount on a credit card will become a never-ending process. It will literally take decades to payoff a large balance if you only make the minimum payments.
The best way we give to help with credit card debt is to encourage our readers to finally say out loud, “ENOUGH!” Decide that you are finally done with being a slave to your lenders.
If you are at this point already, then you need to take ownership of the situation and decide that you will do whatever it takes to being making extra principle payments on your credit accounts.
How much extra should you pay? That is the question most people ask themselves. However, there is no magical number we can give you - no specific percentage extra that you should pay each month to get the balance to zero.
Every person’s situation is different, therefore the best answer we can provide is to pay as much as you can, as often as you can.
If you have created a budget and organized your finances, then you already know how much money you need to support the critical areas of your life. Manipulate these numbers in order to discover just how much extra you can pay toward your credit cards.
The more debt you pay off every month, the better. As long as you stay within your pre-planned budget, there should be no problem with adding on extra money to your payments.
People who are still concerned that they may not have enough extra money available to help with credit card debt, should look for ways to create additional income, above and beyond their current job.
If you can, work more by adding extra hours or asking for overtime. Consider applying for a second job that allows you to work in the evenings or on the weekend. Go through your home and de-clutter it by hosting a yard sale.
The additional revenue you’ll earn in the short-term can help give you the momentum you need toward paying off your existing balances. You will quickly begin to see a light at the end of the tunnel and eventually you’ll realize the day when all your credit balances are at zero.
In the end, the number one way to get help with credit card debt is by helping yourself.
If you want it badly enough, you can dramatically improve your financial situation with a solid plan, clear focus and hard work.
"He that is of the opinion money will do everything
may well be suspected of doing everything for money.”
- Benjamin Franklin |
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Debt is NOT your friend. It's not a wonderful "tool" for building wealth. That's a myth.
