Credit card debt elimination…
The basic financial principle behind any debt elimination technique is the less principal you owe on your debts, the less interest you pay. So by using your monthly surplus to pay more money on your principal, you pay less interest and your debts get paid off faster.
So, whether you are deciding upon the best credit card debt elimination program, the best mortgage debt elimination strategy, or the best method to eliminate your auto loans, the key is to determine which debt you should pay first, how much extra money your should pay on your debt, and when to make your payments.
To accelerate elimination of your credit card debt, you should first get familiar with the benefits and disadvantages of the various debt elimination techniques. Personally, I prefer to use an online accelerated debt elimination program because they are easy to use and will allow you to take advantage of advanced debt elimination strategies to get out of debt faster.
Otherwise, I recommend you use the highest interest rate approach. Basically, you need to list all of your credit card debts in the order of the highest interest rate to the lowest interest rate. You can use a free debt elimination software or spread sheet or do this by hand.
Next take a look at your budget and determine the amount of your monthly budget surplus. Apply the monthly surplus to your first credit card debt as an extra principal payment each month until the first credit card debt balance is paid in full.
Then add your monthly surplus to the amount of the minimum payment you were making on your first credit card debt. This will be your new monthly surplus.
Add this new monthly surplus to the minimum monthly payment for your second credit card debt and make this payment monthly until the second credit card debt balance is paid in full.
Continue this process for the third credit card debt, and each of the remaining credit card debts on your list, until all of your credit card debt has been eliminated.
If you have a home mortgage loan, you can also use accelerated debt elimination startegies to payoff your home mortgage loan in 5 to 7 years to be completely debt free. We'll show you how.