Is you credit card debt a little high? The government reported this past month the US credit card debt is down, but still high. I can’t tell how to make that debt magically disappear. Sorry, you are responsible for your own actions. Here is a way to help. Each day of the month, but $1 in a jar. That is it. $1 dollar. Every month take those $1 bills to the bank in put them into your checking account. As soon as you get home, send an extra payment to your credit card company. believe me, they will hate you for it. By reducing your spending by just $1 per day, you will pay off your credit card faster, and in the process keeping more of your money in your pocket.
Credit card companies rely on you paying interest and monthly fees. The larger the amount you own on your credit card, the more money you will be paying the lender. If you are currently paying the minimum amount on your credit card, take a close look at your statement. It will tell you if you pay “This amount, your card will be paid off in 20 years".” Who wants to pay for a new toaster for the next 20 years? If you must, continue to send in your monthly minimum payment. Also, send in the extra $30 you saved. This extra $30 will go to pay off your principal (the amount of money that you actually borrowed). This will reduce the interest portion of your monthly payments. In other words, you are taking money away from the lender and keeping it for your self, in the long term.
Oh course for this to work, you have to stop using your credit card. If you do use it, make sure you can send in an online payment that same day to cover what you just purchased.
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