How to Get Out of Credit Card Debt in 24 Months
The average American household carries $8,000+ in credit card debt at 24%+ APR. Here's a concrete, step-by-step plan to eliminate it in two years.
Financial Writer
Step 1: Stop Adding to the Debt
This sounds obvious but it's the hardest step. Remove saved credit card numbers from shopping sites, switch to a debit card for daily spending, and address whatever spending habit created the debt.
Step 2: List Every Debt
Write down every credit card balance, interest rate, and minimum payment. See it all on paper. Understanding the full picture is essential before making a plan.
Step 3: Lower Your Interest Rates
Call each credit card company and ask for a lower rate — cite your payment history and competing offers. Consider a balance transfer to 0% APR (see our balance transfer guide). This can save hundreds or thousands in interest over your payoff timeline.
Step 4: Calculate Your Payoff Payment
Use a debt payoff calculator to find the monthly payment needed to be debt-free in 24 months. On $8,000 at 20% APR, you need roughly $450/month. Find that in your budget through cuts or extra income.
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