How To Pay Off Your Credit Card

How to Pay Off your Credit Card

With this post, I promise that I will show you how to pay off your debt before January 31,2018.

Last week I showed you how to save money for the Holiday season. Many of you wanted to know why I did not give a tutorial on paying off the debt instead.

My reason for showing you how to save money first is because we are told to pay ourselves first. By saving money you are honoring yourself.

The first step is to get familiar with the amount you owe. Do not guess the amount, look at the bill or bills and total the amounts.

For example, if you owe $2,600.00, the table below shows what you need to pay monthly in order to pay off your debt in 1 year. You can also see how much interest you are paying monthly, as well as your total interest paid for the year.

It’s important to pay your bills as you get paid, either weekly or bi-weekly.

Let’s use that $2,600.00 debt again plus $282.51 interest over one year. If you get paid bi-weekly, divide that amount by 26 [2,882.51/26 = $110.89] every payday.] If you’re paid weekly, divide that amount by 52 [$2882.51/ 52 = 55.43. ] Your credit card payment is monthly but you can choose to pay those amounts every payday. When you pay your bills as you get paid you will notice that your cash flow is more evenly distributed.

The reason why we incur debt is simply because of the lack of cash flow. Remember you have also been saving, so you now have cash on hand to do your holiday shopping next year.

Payment Summary

Event Amount Term Period
Loan $2,600.00 1
Payment $246.11 11 Monthly
Payment $174.23 1
Payment Schedule

Event Loan Payment Interest Principal Balance
Loan 1 $2,600.00 $0.00 $0.00 $2,600.00
Payment 1 $246.11 $39.87 $206.24 $2,393.76
Payment 2 $246.11 $40.64 $205.47 $2,188.29
Payment 3 $246.11 $35.95 $210.16 $1,978.13
Payment 4 $246.11 $33.58 $212.53 $1,765.60
Payment 5 $246.11 $29.01 $217.10 $1,548.50
Payment 6 $246.11 $26.29 $219.82 $1,328.68
Payment 7 $246.11 $22.56 $223.55 $1,105.13
Payment 8 $246.11 $18.16 $227.95 $877.18
Payment 9 $246.11 $14.89 $231.22 $645.96
Payment 10 $246.11 $10.61 $235.50 $410.46
Payment 11 $246.11 $6.97 $239.14 $171.32
Payment 12 $174.23 $2.91 $171.32 $0.00
Grand Total $2,600.00 $2,881.44 $281.44 $2,600.00 $0.0

If you have any questions or comments, feel free to reach out to me.

Thanks,

Tessa-Marie | tessamarieshillingford46@gmail.com

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s