Credit card debt can be one of the toughest enemies you face as you fight to protect your financial realm. Armored heavily with high interest rates, regular minimum payments often barely make a dent in these debts.
Luckily there are two strategies you can use to fight back effectively. Which method you choose really depends on your situation, but first, you must know your enemy to craft an effective strategy to win the war.
Average credit card debt in the United States is over $5,500, and is even more when you focus only on those who carry balances over every month. And while the average number of cards is less than four, that number often grows to five to ten for those fighting against debt problems.
Now fight: Tiger Style!
Here’s how you make this strategy work. First streamline your budget by cutting out expenses that you don’t absolutely need and this will maximize your power. Hold off on smaller enemies by making standard minimum payments, then focus all of that power to deliver powerful blows to the next debt with the highest APR. This style uses your credit power your biggest enemies in debt first so you target your debts in order of the highest interest rate. Once that first big boss is down, move on to the second and focus the bulk of your power to defeating it next.
As you work your way down, taking out each opponent with the highest APR, you’ll begin to clear the field and gain power as you go. By the time you get to your smallest enemies, you should have enough power to cut down several enemies at once until all debts are eliminated!
Tiger style is best used by fighters with the financial power already available. So if you don’t have much cash on hand, you may not have the power needed to take out those big enemies quickly. In which case…
Crane Style may be your best method.
Scour your budget for any little bit of cash you can use to eliminate debt and make minimum payments to keep your biggest enemies at bay. Target debts with low balances first because they’re easy to wipe out. Here’s how this strategy really works. This method pecks away at smaller enemies first so you can gain power as you start to clear the field.
Next devote your focus to taking down the debt with the lowest balance. You’ll gain monetary power each time you cut down a debt because there will be one less debt to eliminate. By the time you get to your biggest balances, you’ll have the power you’ll need to take them down!
Crane style is best suited for debt fighters with limited cash flow who need to gain momentum as they battle.
And remember, if you’re having trouble winning your battle, Consolidated Credit is here with reinforcements that can help you win!