Ehtiraf

These are the steps that many people, including quite a number of my clients, have taken to get out of debt. You can do it, too.
1. Figure out the absolute largest amount you can afford to
pay monthly toward your credit cards. Let’s say that amount is
$600 a month. You may think this is a lot, but when you carry
a lot of debt on at least several different cards, this is probably
not much less than what all your payments add up to.
2. Review the list of creditors you made up and total the cost of the minimum monthly payments, plus $10, for each of them. If the minimum payment on one card is $150, write down $160, and so on; then take the total of those figures.
3. Subtract this total from the number you wrote down in step 1. Let’s say the minimum payment plus $10 for all of your credit cards is $400. You’ve decided that in fact you can pay $600 a month toward eradicating the debt. Subtract the $400 you must pay from the $600 you can pay, and this leaves you with $200 extra to pay on your credit cards.
4. Now take the “extra” $200 and put it monthly toward the credit card that is charging the highest interest rate. When that card is paid off, call the company and close the account.
5. Now you start all over. Stick with $600 a month (unless you can raise it!) as your debt-paying allocation. Total all the minimum payments of your remaining cards, adding on $10 to each card. Let’s say that this figure is now $300 a month. Subtract this from the $600 you have allocated a month, leaving $300. Pay that $300 to the card that is now charging you the highest interest rate. When this card is paid off, call up the company and cancel it and start all over again with the third card.