Credit Card High Interest Debt
Terry my son is in his mid 20’s and has accumulated about $18,000 of debt on three credit cards; one at 0% expiring Oct 2023 and the other two at about 25%. He is able to barely pay the minimum now but the minimum goes down next month and he has more room to start paying over it. His credit score is about 640 so he does not qualify for 0% cards or personal loans. I heard that you recommend paying double the minimum to pay off the balance in two years. He is getting a second job and may be able to start doing this. What do you recommend?
The formula is a simple one — if you can stick to it.
Write down the current monthly minimum payment on each card. Pay that SAME AMOUNT every month going forward (NOT the “new” minimum).
Do not charge another penny!
The card will be paid off in less than 3 years!
If he keeps paying only minimums he could be stuck paying for 30 years! And he’ll pay more than 4 times the amount he originally charged. Fingers crossed he gets the second job ASAP!!