Debt is a four letter word! Join Compass Catholic on Breadbox Mediaas we share what the Bible says about debt. We’ll also give you tips about how to pay off that nasty balance and get out of debt for good.
Learn how much interest you are paying by using our free calculators - I promise you may not like what you see! Think about this, would you rather keep the money or give it to the bank by paying interest? I thought so…..http://compasscatholic.org/calculators/
Our rule of thumb is to pay off the credit card with the lowest balance first (continue to pay the minimum on the other card(s). It helps you have a quick win which will keep you motivated. After you pay off the card with the lowest balance, take the payment amount from that card and combine it with your monthly payment on the next lowest balance and so on … it’s called the snowball effect and it will melt away those balances.
It is very important to have a spending plan/budget to make this work. Start by tracking all of your spending for thirty days. Here is a link to a spreadsheet to get you started: 30 days tracking income and expenses. (Be sure to “save as” to save it to your computer before entering any info.)
When considering a purchase, especially when you are working towards getting out of debt, ask your self “Is this purchase a ‘want’ or a ‘need?’” Ignore the “wants” and you’ll have more cash to pay off those debts.
Join the Beans for informative and practical discussions about money: how to earn it, spend it, manage it, give it, save it, invest it, and even how to train our children to be money smart.