Green Thursday

Credit Card Blues: After the Black Friday and Cyber Monday

Now that the dust has settled on the Black Friday stakeouts and the Cyber Monday midnight snacks, it's time to take stock of our credit card situation!

If, like most of us, you've put your purchases on your credit cards, this is a great opportunity to review their interest rates, and decide upon a strategy to pay them off. After all, there's no point in saving on a great Black Friday deal, if you're going to have to lose it all to interest!

There are 2 major ways to think about, when working on paying down your cards: The SNOWBALL method, and the WATERFALL (or AVALANCE) method.

  • In the SNOWBALL method, you tackle the card with the smallest balance first. You make the maximum possible payments into that card, while making the minimum required payments into the other cards each month. Once the smallest debt is paid off, you tackle the next one in the same way, and so on. This way, you get the satisfaction of seeing a card completely paid off at the soonest - one less debt to look at. However, you pay more in interest using this method, than using the Waterfall method.
  • In the WATERFALL method, you tackle the card with the highest interest rate first - maximize your payments into that card, while paying the minimum required into the others. In the end, this approach gets all the cards paid off at the earliest overall, and, even more importantly, costs you the least amount in interest - potentially saving you hundreds or sometimes even thousands of dollars. Save money + save time.
We recommend you create a Waterfall plan to pay off your cards (and other loans), and follow it with zeal!

To help build up and maintain a Waterfall plan, check out our website, xeroed.com.

Comments

  1. AnonymousOctober 6, 2021 at 10:19 AM

    I'm Serenity Autumn , currently living in Texas city, USA. I am a widow at the moment with Four kids and I was stuck in a financial situation in May 2019 and I needed to refinance and pay my bills. I tried seeking loans from various loan firms both private and corporate but never with success, and most banks declined my credit. But as God would have it, I was introduced to a woman of God a private loan lender who gave me a loan of 850,000.00 USD and today am a business owner and my kids are doing well at the moment, if you must contact any firm with reference to securing a loan without collateral , no credit check, no co signer with just 2% interest rate and better repayment plans and schedule, please contact Mr Pedro On Email pedroloanss@gmail.com He doesn't know that I am doing this but I am so happy now and I decided to let people know more about him and also I want God to bless him more.

    ReplyDelete

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