Dealing With ‘Debt Hangover’

Written by admin - Leave a Comment

‘Tis the season… To start paying off your holiday bills, that is. According to a recent AP news article:

Even before the 2007 holiday spending season began, Americans added more than $50 billion to their credit cards in the first 10 months of the year to reach a record total of $928.5 billion in October, according to the Federal Reserve. The additional spending in November and December undoubtedly pushed balances even higher.

It should thus come as no surprise that a recent poll revealed that the the top financial goal for 2008 is to pay down debt.

So how do you do it?

Obviously, spending less than you earn is the key to freeing up money for debt repayment. But what’s the best repayment strategy?

You may want to consider setting up a ‘debt snowball‘ of some sort… List your debts from lowest to highest balance or from highest to lowest interest rate, and then attack them from the top of the list down. Pay the minimum amount due for all cards, which is where you’ll direct any extra money that you can come up with. Once you’ve knocked out the first one, add that monthly amount to what you’ve been paying toward the next debt on the list, and so on. Before you know it, your debts will begin to melt away.

Another trick would be to apply for one or more 0% credit card offers and then transfer your balances to them while paying things off. Doing so effectively shield your debts from further interest charges, allowing you to pay things off faster than would otherwise be possible.

Share and Enjoy:
  • del.icio.us
  • Digg
  • Facebook
  • LinkedIn
  • Twitter
  • Yahoo! Buzz

Published on January 4th, 2008 - Leave a Comment
Filed under: Debt Reduction

Related articles...

» Help for the New Year’s Credit Card Hangover
» Will Credit Cards Reduce Your Debt?
» The Best of March 2008
» Negotiate With Credit Card Issuers
» Should You Pay Off Credit Card Debt or Invest?
» Carnival of Debt Reduction Coming Soon
» Presidential Candidates and Credit Card Debt
» Borrow Against Your Home to Pay Credit Card Debt?

If you found this article useful, please sign up to receive free e-mail updates:

You will receive only the daily updates, and can unsubscribe at anytime.

Comments (scroll down to add your own):

None so far - share your thoughts and be the first!

Leave a comment

Subscribe without commenting

Get free updates...

Articles via e-mail:

Search this site...


Credit card resources...

Recent articles...

Recent comments...

Most talked about...


    The terms of third-party offers referenced on this website are subject to change without notice. While we strive to maintain timely and accurate information, offer details may be out of date. Visitors should thus verify the terms of any such offers prior to participating in them. Please see our terms of service for additional details.