Your Questions About Pay Off Credit Card Debt Fast

Ruth asks…

What is the fastest way to pay off credit card debt?

richmama answers:

Try cutting expenses.
This is easier than you might think.
If you eat out everyday, try eating out 2 a week and taking your lunch on the other days.
Do you really need 300 cable channels?
If not cut your cable lineup alittle
Can you switch to a NO interest credit card (I just got one from bank of america 1800 732 9194 and they gave me a no interest free transfer)
Can you have a garage sale or sell a few things that you dont use anymore on ebay.
$100 a month (which is not unrealistic) would put a HUGE dent in your credit cards if you were able to apply that on top of what you are already paying.

The most important thing is YOUR DESIRE!
Since you have that, the rest is EASY and you can do it~

Jenny asks…

what will pay off a credit card faster? $50 a month on 9% or $100 a month on 23%?

i have just successfully paid off a credit card! (yay for me!) but i have more to go all ranging in interest from 1.9% to 24% the one i just paid off was 24% with a small balance. now here’s my question. i paid $50 a month on that card like clockwork every month even though my payment was only supposed to be $15. i’m now used to spening $50 a month on this bill. i have another card offer for a fixed rate of 8.99 %. should i get this card and transfer a small amount from one of my high interest cards (like $300 at a time) and pay $50 a month on that to pay off each transfer in about 6-7 months and keep repeating it till done with my goal(i won’t use this card for anything else). or should i just take that $50 and add it to another existing card to make that payment $50 higher? i would still continue to pay all my other cards on schedule (and i always pay a little extra on each one as best as i can) i have approx $22K in credit debt on various cards thanks to my ex-hubby. i make 30K/yr!

richmama answers:

Myself, I like to get rid of the smaller-debt cards first, because it makes me feel like I am getting somewhere with my debt. It also allows me to snowball the payments to the next card. So if I had three cards at $300, $600 and $900, I would go in that order for paying them off, regardless of the interest rate. I would continue making payments to the larger balances (minimum payment), then I would take the extra payment from the card before and apply it to the payment going to the larger one. This is what works for me. Because if I were to try and tackle the $900 one first I may fall off track. So getting some “quick wins” works for me.

Donna asks…

What is the fastest way to pay off credit card debts other than consolidating them?

I have heard that paying the highest interest rate card off first is the best way, but I have also heard that paying the lowest amount off first is the best way. I’m open for suggestions , thanks.

richmama answers:

Start with the highest interest rate card or the card with the lowest balance–whichever you prefer. Only pay the minimum on the rest of the cards. Any extra cashflow should go to paying off the chosen card. Once it’s paid-off, snowball the money that was going to that card to the next card you choose to pay off…and so on, and so on. By choosing the highest interest rate card first, you obviously are eliminating the most wasted money being spent on interest; however, sometimes it’s a smarter move to start with the smallest balance so you feel as though you’re accomplishing something and don’t become discouraged. On that same note, it is important not to put every extra penny onto paying off the cards. You MUST leave yourself a little “fun” money or you WILL become discouraged and throw in the towel. Good luck! You can do it! It’s worth it!!!

Mandy asks…

Is it better to pay off revolving debt at a low rate or installment debt at a higher rate?

Let’s say you have a student loan at 8 percent and credit card debt at a fixed 3.99 percent. Conventional Wisdom says pay off the higher rate debt first. But, I have read that paying off credit card debt faster improves your credit score, which can save you thousands on a mortgage. So is it better to pay off the lower rate credit card debt and improve the credit score, or the higher rate debt and save the immediate money on interest.

richmama answers:

I’d say if you were buried, then ya, pay off a smaller one first just to get momentum going. However, your openess to approaching this situation and manner about doing so indicates that you might not need that added “ego” boost.

That said, most people would say (and as you say, conventional wisdom too), pay off your highest rate debt first and work your way down. At 3%, you could put that money in cds, etc, and earn 5%. Keep the 3% debt unless you have excess cash. Pay the 8% stuff off first. Once complete, that’ll allow you to get more debt at favorable rates as well.

Check out Suze Orman’s site for a few tidbits,

But it really sounds like you’re ready for millionairemind! That will most likely change your life! It’s a program by T. Harv Eker, author of Secrets of the Millionaire Mind.

Go to for more info.

It’s pretty amazing.

Hope that helps!

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