subject: Debt Relief Advice – Tips For Quickly Pay Down Credit Card Debt [print this page] When looking at the issue of paying down debt it can be difficult to know where to start. Even minor debt problems are stressful to live with, and larger ones can take over your life. If your debts are too large to cope with, you need to get help and advice on how to solve them, maybe through a debt management plan or even insolvency. If, however, your debts are bearable but unwelcome, you might want to explore a method of paying them off as soon as possible. One such method is known as the debt snowball, and it's particularly effective when dealing with multiple unsecured debts such as credit cards.
The basic idea behind the snowball technique is to concentrate your repayment efforts on one debt at a time while merely servicing the other ones. To begin, draw up a list of all your debts, the amount you owe on each, and the interest rate you're paying. Make sure that you're paying the minimum necessary on each debt to avoid any penalties or collection proceedings.
Next, select the debt which you have most chance of clearing first, and focus your energies on putting every last bit of spare cash you have into repaying this debt, while still keeping up the minimum payments to the others.
Once this first debt is cleared, choose the next most easily repayable debt from your list. This is where the snowball effect kicks in - add the amount you were paying in regular repayments on the now-cleared first debt, and add this amount to your regular payments on the new first choice debt. Again, put any extra money you have into clearing this debt while still keeping up payments on the others. Once this debt is cleared, transfer everything you were paying on it onto the next debt in line, and so on and so on.
As this process continues, you'll find that debts become cleared faster and faster, as the power of your repayments grows and grows like a snowball rolling down a hill. Becoming debt free is never easy, but if you have multiple debts which are becoming a burden, the snowball method is the fastest way to pay down your debt.
Debt Relief Advice Tips For Quickly Pay Down Credit Card Debt
