Credit card companies make a lot of money. Total revenue for the credit card industry is in the hundreds of billions of dollars and your interest payments are contributing to their revenue. That means less money in your pocket.

There are many people who think getting rid of credit card debt is painful. What’s more painful is keeping credit card debt. Here are some tips and thoughts.

• Always pay more than the minimum required on credit cards.

Here are the steps to pay off your credit cards.

STEP 1:

Figure out the largest possible amount you can afford to pay each month toward all of your credit card balances.

STEP 2:

Make a list of your credit cards rank them by the highest interest rate.

STEP 3:

Next to each credit card list the minimum payments plus $10.

STEP 4:

Total the minimum payments plus $10 and subtract it from the amount you can afford to pay each month toward all of your credit card balances.

STEP 5:

Take the value difference in STEP 4 and apply it to your credit card with the highest interest rate until it is paid off. Once paid off, move down your sheet and apply the payment in addition to your minimum payment +$10 to the next credit card on your list and so on.

If you need help with budgeting and debt counseling. Contact a non-profit counseling agency at:

http://www.hud.gov/offices/hsg/sfh/hcc/hcs.cfm or email me and I’ll send you a list.

Side note:

On your credit card statement, you’ll find a column which indicates the minimum payment to pay off your balance three years. Make that payment if possible. You’ll be out of credit card debt in 3 years.

If you have reverse mortgage questions, call me Angella Conrard. I am here to help. 

Certified Reverse Mortgage Professional.

I’ll provide you with accurate honest information free of sales or pressure. (949) 267-3409.