This 4-phase strategy explains how to eclipse your debt until it disappears completely.
Across America today, people will look towards the skies to marvel as the sun disappears completely in a total eclipse. It’s the first time it’s happened in 26 years and if you haven’t made plans already Space.com explains how to watch it. In the meantime, want to know what else can take 26 years? Trying to eclipse your debt with minimum payments.
If you carry high balances on high interest rate credit cards, it can take decades to pay off your debt. Literally. We did the math…
On a standard 2% minimum payment schedule with average APR of 15%, it takes just over 26 years to eliminate a $4,500 debt. So, a total eclipse of your debt takes about as long as the time between total solar eclipses on minimum payments.
That amount of time might make eclipses special, but it’s no way to pay off your debt. That’s why Consolidated Credit created the Eclipse Your Debt infographic that tells you how to achieve a total eclipse of your debt much faster:
Is there any way to totally eclipse your debt faster?
We’re glad you asked. There are actually several:
All these options offer better, more efficient ways to pay off your debt when traditional debt reduction isn’t effective. Experts recommend that a good credit card debt elimination strategy should take five years or less. Any more than that will take too long, increasing the chances you’ll drop out and start charging again. Longer plans also mean higher total costs.
The options above help reduce the interest rate applied to your debt, making it easier to pay off quickly. They can all be viable, but depend on your financial situation. If you aren’t familiar with them, talk to a credit counselor. They can help you understand your options and evaluate which will work best in your situation.