How To Make An Extra $50 Payment On Your Credit Card This Month
June 16, 2008
Did you know that if you only make the minimum payments on your credit card bill each month, it can take you over 10 years to get your card paid off?
And you’ll wind up paying 3 or 4 times the price for everything you bought on that card by the time you add up all the interest?
Making the minimum payments is financial suicide.
Whatever it takes, you should always pay as much more than the minimum payment as you can.
What if I told you that you could make an extra $50 payment at the end of this month, on whichever credit card you want?
Here’s the secret:
Spend $50 less on unnecessary purchases and put that money towards your credit card payment.
Sounds a little simplistic, doesn’t it? You might be thinking “I just don’t have any expenses I can cut out. There’s no way I can come up with an extra $50 this month.”
Well, I’m willing to bet that isn’t truly the case.
What I need you to do is track your spending for one week. Get a receipt for every purchase and write them all down in a journal or enter them all on your computer.
At the end of the week, go back and look at what you spent money on.
Did you buy your lunch on any of the days?
What about Starbucks or some other expensive drink “fix”?
Did you buy any books or magazines?
I’ll bet that you’ll find a few things that you don’t really need - you might want them but you don’t actually need them.
Start taking your lunch to work, buy a regular coffee instead of the fancy latte, and pay your local library a visit.
I suspect that if you do this exercise for a week, you’ll find at least $10-$15 a week that you’re spending on frivolous things.
Once you identify them, resolve to avoid them for one month, and use the money you save to make an extra payment on your credit card.
Once you’ve made it through that month, you’ll probably realize those things weren’t really all that necessary anyway, and you can continue to put that extra $50 towards getting yourself out of debt.
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