Should I Pay More Towards My Debt?

The best way to do it is to pay off your debt is using the Debt Snowball. Start with the credit card that has the lowest balance first. Then move on to the next card and take the amount you were paying on the first card and apply it along with current card's payment. Keep doing this and you will start a chain reaction that will enable you to pay off your debt in no time.

The majority of my credit cards are on debt reduction or balance liquidation programs and many of these cards now have a zero interest rate. I am close, but I have not begun the Debt Snowball Effect. Once I do though I am going to see if I can get my creditors to apply the extra payments directly towards my principal on the accounts that are still charging interest. This should accelerate my payment plan faster than the intended five year plan I have now.

Many of my billing statements don't include a line on the bill to apply extra towards principal, but I am planning on sending the extra funds in a separate envelope and writing "principal only" on the check.

There are not any sort of pre-payment penalities on any of my credit accounts, but if you are planning to pay extra towards your accounts like me, you might want to check and see if your creditors charge a fee for paying off an account early. If so, try and get it waived. Tell them you are paying extra each month and will continue to do so until the account is paid off.

If your creditor won't let you apply extra money towards the principal, bug them daily until they do!

[This post is written and copyrighted by Financial Elite (http://financialelite.blogspot.com/ ).]

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