After a divorce, you’re left with a tangle of emotions to sort out. On top of that, most individuals are also left with a tangle of debt to pay off as well. While it can seem as if you will never get things straightened out, you will! This article discusses important tips and one of the most effective ways of paying off credit card debts after a divorce.
First, Gather Each of Your Credit Card Statements
The first thing you need to do is gather the most current credit card statements you have. Grab a notebook so that you can make notes. Find out which one of your cards has the highest balance. You also want to know which one has the highest APR or Annual Percentage Rate. When you find the one with the highest APR and payment, list it on your paper first. Continue down the line, with the last credit card being the one with the lowest APR and balance. Beside each credit card, list the balance due and the minimum payment amount.
Now, Start Getting Rid of Your Debt
Now that you have established the highest interest rate cards, your job is to pay them off starting with the highest interest rate. Pay more than the minimum payment on the first card – in fact, pay all you can afford to pay without neglecting the other minimum payments. This will help you get the highest interest card paid off first. Once you have that card paid off, you can remove it from the list, cut the card into pieces (optional) and then move onto the next card on your list. By using this method, you will effectively cut through your credit card debt.
What About Once the Cards are Paid Off?
Credit cards are dangerous. It’s just too easy to pay for something that you don’t have the money for, use them when you really, really want something expensive and other situations that can get you into trouble. While most people should probably have one credit card in order to pay for emergency situations or to build credit, there is no need for more than one. If you can’t pay for the item you’re purchasing, don’t purchase it. Getting rid of your credit cards will keep you from accumulating another pile of debt that you just don’t need. It’s up to you whether you want to keep them or get rid of them, but cutting up your credit cards brings a freedom that feels great!
Credit card debt is nasty, nasty business and if you use the tips above, you can effectively get rid of your debt in a way that will save you more money. You can also pay off your credit card debt more quickly and get back to a life of freedom. You will definitely feel more stress free once you’ve paid off your debts and the collectors stop calling and writing letters. Use the tips above to achieve that freedom!