2.ĭebt consolidation: This option combines all your debts into one credit line so that you have just one payment. ![]() After eliminating the first balance, Carl had enough money in his budget to pay $75 a month toward balance No. Once the first balance is paid, make your "snowball" bigger by using extra money in your budget to pay even more for the next debt on your list.Įxample: Once Carl listed his debts from smallest to largest, and he started paying $50 a month for balance No. Snowball: List your debts from smallest to largest, and pay the smallest first. Now she pays 0% interest for the next 12 months.Īvalanche: List your debts from highest to lowest interest rates, and pay them beginning with the highest. There is usually a small fee to transfer the balance, and then the company will tell you how long the promotional interest rate will last.Įxample: Before transferring the $2,000 balance, Taylor was paying 30% APR on $2,000. ![]() ![]() This opportunity allows you to take an old balance from another card and transfer it over. Some of the most common include:īalance transfer: You take advantage of a new line of credit with a promotional offer. There are numerous ways to begin paying off your credit card debt.
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