When speaking of the strategy to eliminate debt, most people who hear this usually think of eliminating debts by paying every debt they have, at the minimum rate.
If you have several credit cards and have a lot of debt payment to make each month, you will soon realize that you will be among the 98% of people who are doing the same.
That's because like other people who are struggling to consolidate their credit card debts, you might not realize that instead of relying on credit card strategy for eliminating debt, which can sometimes take a look at its 'Pay Debt Strategy' instead.
Like I've said before, what most people would do to clear your credit card debt is to make the minimum payment on each credit card with the excess amount above it to start reducing their all debts loans.
Well, sorry to say this, but this is definitely the wrong way to do it.
You see, really, when you are in debt, you are limited to these 3 scenarios.
1) credit sucks.
2) You are spending on high interest rate
3) You simply have to many credit payments to support
If like everyone else, you want to know how to get out of these positions struggling, this may be the best Missing link to its strategy of eliminating debt.
Listen to this. The most important strategy for eliminating debt is to make only the minimum payments on all your debts or credit cards except one.
Basically in this strategy, you would have to make any additional payments you have made to each credit card or debt you have, and consolidate that extra budget to pay credit card 1. Try to pay on card loan with the highest interest rate.
For example, if you were to pay extra $ 30 from each of its payments of 5, then based on this elimination strategy would have to pay extra $ 150 in just one of his debts.
With this method, you can expect to be able to pay off your debt much sooner and be able to close that particular account. Only then you can begin to focus on close another account using the same basic debt elimination strategy as above.
By paying the highest interest rate debts first, this will not only help you save money in the long run, it will also help you fight back his debt of large credit card simply focusing on closing the accounts one by one.
This clip 1 minute Micheal Porter is a must for each of us to learn what strategy really is.