Dump Debt Grow Wealth

Snowball Strategy to Reduce Your Debt

There are a lot of people out there that are saying it almost impossible to reduce your credit card debt and still lead the life you want and have "all the nice things you need."  Now I'm not saying that reducing your credit card debt is a walk in the park, especially if you are thousands of dollars in debt but it's not as hard as everyone seems to make it out to be. 

It's sort of like going on a debt diet.  Imagine if you gained 10 pounds over the course of a year.  You shouldn't expect to lose it overnight, should you (I hope not).  The same goes for your "fat credit cards.  If you "gain weight" over the course of a year, you shouldn't expect to lose that debt fat overnight, but it can and does happen.  Here's one way you can cut your debt without any pain at all.

If you have more than one credit card, one debt dumping strategy you can use pay more than the minimum due on all of them if you can.  If you can't do that, pay just a little more than the minimum on the card that has the highest interest rate.  This is what I call the "Snowball Strategy."

And here's the snowball strategy...  Once you have paid more than the minimum on one card and then paid that high interest rate card off, take the amount of money you were paying on that high interest card and add it to the payment of your next highest interest card.  This way you actually start to double the amount you pay on the second card once the first card is paid off.  You will wind up paying off the second card even faster.

You can use this same strategy for all your cards until they are paid down or paid off.  Now, the success of this strategy also supposes that you don't continue to spend more and more on your cards so when you pay one off, just put in a drawer or safe deposit box and don't use it.  The fact is that you cannot be free in this country until you are our of debt.  Only then can you control your own destiny and that's very important.

Be well and I am yours in success.
Randall

Credit Addiction

Credit Addiction

Are you addicted to credit?  Are you a “shopoholic?”  Do you like to “shop-till-you-drop?”  Many Americans can be considered compulsive credit users which means that they spend more than they make and hope that someday they’ll make more to pay it all off.  The problem… That “someday” never comes and they stay in debt forever.

I was a compulsive credit user and my continuous urge to spend caused my first bankruptcy.  I was addicted.  I loved to spend, loved to shop and always had the “nice things.” 

Then I began robbing Peter to pay Paul, then robbing Paul to pay everyone else until it all went downhill and was $50,000 in debt. Does this story sound familiar?  I spent $25,000 alone on credit cards in less than three years and the funny thing is on the day that I declared bankruptcy I was approved for yet another credit card.  All this by the time I was 24!

When you’re a compulsive credit user you really have the mind set of “it’s only $15 a month, I can afford that.”  And then your “it’s only” payment goes up to $20 a month, and hen you get more credit cards and pretty soon you are paying hundreds of dollars a month just on your “it’s only” minimum payments. 

At one time I had over 20 credit cards all maxed out. It happens and it’s very easy to fall into this trap.

So how do you know if you are addicted to credit?  Take the Quick-Start Credit Debt Quiz on the following page to find out.

Quick-Start Quiz:  Credit Card Debt

Is the amount of credit card debt you have making your home or work life unhappy?

Do your debts cause you to hate yourself?

Have you ever lied to your creditors to get more credit?

Do you fear that your employer, family or friends will find out about your credit card debt?

Does the pressure of your debts distract you from your work?

Do you have difficulty sleeping because you think about your credit card debt?

Do you like to buy now and pay later?

Do you always carry a credit card with you?

Have you ever promised yourself to pay off your credit card debts, only to not follow through?

Do you justify your debts by telling yourself that you will pay them off when you get your big break?

How did you score? If you answered yes to three or more of these questions, the chances are that you may have a problem controlling your credit card spending and are going father into debt.

The free information on dumpdebtgrowwelath.com will help you get control of your spending, show you how to get out of debt, and will light a path for you to follow. 

I am yours in financial freedom,
Randall