“Weighed down by credit-card bills? In part three of Real Simple’s get-out-of-debt series, learn insider strategies for zeroing out even a sky-high balance. You owe it to yourself.
By Vera Biggons on RealSimple
Minimum payment due, reads the box on your credit-card statement. What an enticing idea: Pay a small amount and you’re off the hook for the whole bill—for a while, anyway. Alas, as the more than 45 percent of Americans who carry a balance every month know, that rotating charge usually comes back to bite you. For example, a cardholder who owes $15,956—the average amount of debt per household, according to Ben Woolsey, the director of marketing and consumer research for CreditCards.com, a credit-card–comparison site—will end up shelling out an additional $11,000 in total interest if she pays only the minimum each month.
You may have had a very good reason for running up high-interest debt: Maybe you had to make some unexpected big-ticket purchases or lost a job or endured an illness. But regardless of the cause, ridding yourself of that balance should be your top financial priority. “You need an action plan to help you work at reducing
and eventually eliminating what you owe,” says Gail Cunningham, a spokesperson for the National Foundation for Credit Counseling, a nonprofit organization. Here are several ways to create one for yourself.”‘
Jump to read the full article on Real Simple in their three-part series on how to eliminate debt. As Vera states, “You owe it to yourself.”