Anybody in Austin, Texas have credit card debt? I saw a lot of hands go up….
Getting into credit card debt is easy. We know! Getting out of credit card debt is hard, sometimes very hard. But you have to make the sacrifice if you want to end this nightmare. Maybe cancel cable or Netflix or gym membership? Deliver pizza on weekends?
Capital Budget Strategies, LLC, Austin’s best Money Coach and Financial Advisor, developed a trick to paying off credit card debt. Here is how it works:
1. Write down all your credit card debts, listing the name and Minimum Monthly Payment required for each card. (Always try to pay at least the minimum monthly balance!)
2. Add up all the Minimum Monthly balances to get your Total Minimum Monthly Payment or TMMP. It is also the least amount you should be paying per month. (Think of having that much money “extra” when all your debts are paid off!)
3. After designating your TMMP from your income, figure out how much extra you can add per month. Maybe it is $50, $100 or $150. For this example, let’s use $100. This is now your Monthly Credit Card Debt Repayment Amount. This amount will not change until all your credit card debt is paid off, so get used to it.
4. Find the credit card with the lowest balance. Pay the Minimum Monthly Payment on all your credit cards, but add the $100 to the lowest balance. This will take care of that debt much quicker.
5. Once the smallest credit card debt is paid off, find the credit card with the highest interest payment. You now have additional “extra” money to put towards this credit card: the extra $100 + the minimum monthly payment you were paying on the credit card with the lowest balance. Remember you are still paying the minimum monthly payments on all your other credit cards.
6. When the credit card with the highest monthly interest is paid off, you now have lots of “extra” money to put towards your next credit card: $100 + the minimum monthly payment you were paying on the credit card with the lowest balance + the minimum monthly payment you were paying on the credit card with the highest interest! Wow!
7. Your choice on which of the remaining credit cards to pay off next, the remaining credit card with the lowest debt total or the remaining credit card with the highest interest rate.
If you need help making a financial plan in Austin, contact Captial Budget Strategies, LLC. For only $199, our Austin Money Coach will help you determine your true Net Worth, analyze your spending, set up a Household Monthly Budget, an Emergency Fund, a Snowball Debt Repayment Plan and even give you an idea how well you are doing saving for retirement.
Our Austin Financial Coach can meet at your office, your home or our home-office. We can meet you during the day, in the evening and even on weekends.
Give us approximately 4 hours with our Austin Financial Coach to start your journey to financial security.
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