I like to get straight to the point, so let’s answer this question directly then I’ll explain the absolute best way to pay off credit card debt.
Question: What Is A Dangerous Amount of Credit Card Debt?
Answer: Any amount (of debt) that you cannot pay off at the end of the month with your working income. Credit card debt tends to spiral out of control once balances start carrying over between billing cycles. If you want to make sure you are not putting yourself in a bad position, then don’t use your credit card like a miniature loan. It’s not.
Now, I have to assume that someone searching the Internet wondering how much credit card debt is dangerous likely is in debt, worried about going into credit card debt or just plain curious. Regardless of which boat you might be in, I am going to cover the best way to pay off credit card debt in the video below just so you know.
Let’s review the 5 steps to paying off credit card debt covered in the video:
1. List all of your debt from smallest balance to largest balance
2. Start making the minimum payments on all of the debt except the smallest
3. Pay as much extra money as possible toward the smallest balance until this debt is paid off
4. Once the smallest credit card debt is paid off, put all money toward the 2nd smallest balance until it is paid off
5. Repeat these steps working up your list until the largest debt is paid off
This is the best way to pay off credit cards. You’ll be able to see progress quickly while staying motivated to continue paying off debt. Once all of the debt is gone, you’ll be able to enjoy more of your income for the things you like most.
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