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Three strategies to get you out of credit card debt faster.

Updated: Jan 19, 2021

There’s good news and bad news. The bad news is banks are making billions of dollars on credit card interest and fees. The good news is, tackling credit card debt is one of the fastest ways to save money and improve your credit score, which is great news if one of your goals is to buy a home! 


You can buy a home with credit card debt, but it's much easier and safer to buy a home when your credit card debt is paid off.

By paying off your credit card debt, you'll free up your finances, improve your credit score, and improve your chances of getting your mortgage approved. So where do you start? 

Here are three different methods you can use to kill your credit card debt FAST: 

1. The Snowball Method

2. The Avalanche Method

3. The Search and Shrink Method



THE SNOWBALL METHOD

This is where you’re going to list your credit cards from smallest to largest, in terms of debt, make minimum payments on all the credit cards, add extra money to the smallest card and pay that off first.

By doing this you’ll reduce the number of credit cards you own, faster. Psychologically this'll feel really good and you’re less likely to be late on credit card payments if you have fewer of them to make.


THE AVALANCHE METHOD

With this approach, you list your debt by the highest interest rate. This one's my favourite, but...its savage. You make minimum payments on all your credit cards, and make the largest payment to the highest interest rate credit card, until it's paid off. This one makes the most mathematical sense, but it doesn’t have the same emotional benefit as the snowball method.

THE SEARCH AND SHRINK METHOD

This method is all about shrinking your interest rate fast on your debt.  Go online and search for a 0% introductory interest credit card or low interest LOC. By transferring your highest interest credit card debt to the new low interest card/LOC and making larger payments, you can pay it off during that introductory period and pay $0 in interest.

Whichever method you choose just remember this whole debt thing is a game. It’s a money game. Once you know the rules you can play smart and you can win. I encourage you to share this with anyone who you think could benefit from this information.










C. IVY Stephenson

M: 647-300-7959

O: 905-695-7888

F: 905-695-0900


C IVY and Start Packing! 😃

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