Ask Terry Questions Paying off credit card debts

Paying off credit card debts

By Terry Savage on March 17, 2024 | Credit/Debt

Not a question. Sharing the strategy I used to eliminate our credit card debt years ago. Since I got paid weekly I decided to pay our credit card bills weekly too whether the bills had arrived or not. The outstanding balances were eliminated in a couple of years.

Now when we buy a big ticket item we buy from a retailer that offers a 6,12, 18 or even 24 month interest free repayment plan. I divide the total cost by the number of weeks the plan allows to arrive at the weekly payment amount required and make sure th increase that weekly payment by a few dollars so the debt is satisfied before the interest free period expires.

We don’t use that card for any other purchases until it’s paid off. This is easy to manage because both my wife and I have credit card accounts at the all the same retailers.
I hope this helps.

Terry Says

That’s a nice discipline, but I hope you know that retailers who offer “zero” interest terms, almost always make it up by increasing the price of the object purchased! That includes cars, TV, and consumer goods. Better to ask for a discount for cash up front!



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