If you maintain a balance on your credit cards you are probably paying hundreds of dollars a year in interest. This is money that could be put to better use.There is a simple method of paying off credit cards that doesn't require too much extra money each month. This method is called payment snowballing. While your biggest gain will be from paying off credit cards, you can also use this method to pay off installment loans, your mortgage, medical and other bills.
By snowballing your payment you start paying off credit cards and adding
money you were paying on paid off credit card to next one. This is one of quickest ways to eliminate your credit card debt.
I have developed a simple form to help with this process. At this point you may want to look at a sample payoff schedule at http://www.homemoneyhelp.com/sampleccpayoff.html. You enter name of credit card, amount you owe and your actual payment on form. You can see a printable copy of "Snowballing Your Credit Card Payment Schedule" at http://www.homemoneyhelp.com/ccpayoff.html . You may enter your figures on this form before you print it. It is best to list credit cards in order you wish to pay them off.
There are two schools of thought about which way is best. Many experts believe that paying credit cards with highest interest first is best. You then go to credit card with next highest interest and so on. Personally, I believe people need to see results quickly. I recommend paying off credit card with lowest balance first and then go to next lowest balance, etc. Whether you start with highest interest rate credit card or one with lowest balance it will ultimately achieve same results.
