Debt Management Resources

[On-screen text] Take Down Credit Card Debt: The Right Way to Fight High Balance Credit Card Debt

Narrator: 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.

[On-screen text] There are 2 basic strategies to reduce debt effectively. The style you choose depends on your situation.

Narrator: Luckily there are two strategies you can use to fight back effectively. Which method you choose really depends on your situation.

[On-screen text] But first… you must know your enemy

Narrator: But first, you must know your enemy to craft an effective strategy to win the war.

[On-screen text] Average credit card debt per U.S. adult = $5,596; cards that have a balance month-to-month = $7,743; average no. of card per cardholder = 3.7

Narrator: 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.

[On-screen text Fighting style no. 1: Tiger Style. For those with the power to take big bites out of debt every month. Debts to target: Highest interest rate first

Narrator: Now fight: Tiger Style!

[On-screen text] How it works

Narrator: Here’s how you make this strategy work.

[On-screen text] Maximize your fighting power: Streamline your budget, cutting unnecessary expenses and boosting cash flow

Narrator: First streamline your budget by cutting out expenses that you don’t absolutely need and this will maximize your power.

[On-screen text] Hold off smaller enemies: Maintain the minimum payments on all of your debts except one

Narrator: 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.

[On-screen text] Take down biggest threat first: Make the largest payment possible on the debt with the highest interest rate

Narrator: This style uses your credit power to take out your biggest enemies in debt first so you target your debts in order of the highest interest rate.

[On-screen text] Move on to the next biggest threat: Once the first debt is done, roll your cash over to the next highest APR debt

Narrator: Once that first big boss is down, move on to the second and focus the bulk of your power to defeating it next.

[On-screen text] Start clearing the field: As you work your way down, you’ll have more cash power to eliminate debt even faster – you gain more power as you go!

Narrator: 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.

[On-screen text] Eliminate multiple enemies at once, when possible: Once the first debt is done, roll your cash over to the next highest APR debt

Narrator: 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!

[On-screen text] Are you a tiger? You need power to be a tiger – if you don’t have a large volume of cash available in your budget, you won’t have the power necessary to take bites out of your biggest debt threats.

Narrator: 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…

[On-screen text] Fighting Style No. 2: Crane Style. Peck away at your smallest debts first to gain the momentum you need to win. Debts to target: lowest balance first

Narrator: Crane Style may be your best method.

[On-screen text] Find any available seed money to feed your fight

Narrator: 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.

[On-screen text] Keep combatants on the field: Keep up with minimum payments on all of your debts

Narrator: Target debts with low balances first because they’re easy to wipe out. Here’s how this strategy really works.

[On-screen text] Start by pecking away at your smallest debt: Devote all of your extra cash to make the biggest payment possible on your lowest balance

Narrator: This method pecks away at smaller enemies first so you can gain power as you start to clear the field.

[On-screen text] Each debt eliminated boosts your energy: Every time you pay off a debt, you eliminate that bill so there’s more cash to face bigger enemies

Narrator: 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.

[On-screen text] Work your way up to the biggest baddies: Once you’ve cleared out all of the small debts, roll those savings into the cash you’re using so you can take out the biggest threats.

Narrator: By the time you get to your biggest balances, you’ll have the power you’ll need to take them down!

[On-screen text] Are you a crane? If the debts that have the highest interest rates are also the ones with the biggest balances and you don’t have a lot of cash, then it makes sense to start at the bottom and work your way up.

Narrator: Crane style is best suited for debt fighters with limited cash flow who need to gain momentum as they battle.

[On-screen text] Consolidated Credit. When debt is the problem, we are the soluti8on. Call 800-210-3481, www.consolidatedcredit.org

Narrator: And remember, if you’re having trouble winning your battle, Consolidated Credit is here with reinforcements that can help you win!