Can Credit Cards Actually Help You Get Debt Free Faster?

Here’s a nice twist on it – using credit card issuers’ setups to claw back a bunch of money they charge you. Isn’t that poetic justice?

A Typical Example

The Smiths carry 3 credit cards, and have a total credit card debt of $10,000.

Their card debt is distributed as follows:  (Swipe up ...)

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Plan 1: Minimum Payments Only, But Stop Digging

The Smiths know they shouldn’t charge anything new on their cards, but their finances aren’t in great shape, so they still need to charge about $500 a month for various expenses.

Plan 2: A Far Better Option – The Snowball Method

and as much extra as you can toward the card with the lowest balance.

Here, you pay the minimum on each card that has a balance, 

Plan 3: Another Great Option – The Avalanche Method

There’s a method that’s better than the snowball method, but it requires more discipline.

Plan 4: Using The Credit Card Perks Against The Issuers

It turns out that the highest-interest card pays the Smiths 2% reward each month on any new purchases.

Can Credit Cards Actually Help You Get Debt Free Faster? - Wealthtender

Here, the Smiths find a new and intriguing credit card offer. Swipe up to read more....

The Bottom Line

If you’re deep in credit card debt, it isn’t easy to get out. However, if you stop digging (i.e., don’t use the cards for any purchase you can’t pay at the end of the month),

and use the snowball or avalanche method, you can save yourself a ton of money and years of debt-servitude.

Banking and Credit

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