
If you’re like me, you’ll have a few debts knocking around. I’ll be honest with you, I’ve got 3 credit cards, all of them are over their limits – so I could do with improving my debt management skills. There’s no way I’ll clear my debts in time for Christmas, so I’m going to be realistic and aim to clear them in time for next Christmas!
When I say I will improve my debt management skills, I mean I will learn how to handle my debts more effectively – in other words, how to get out of debt in the fastest affordable way.
I have figured out which credit card debt I need to make overpayments to first, and this is the one that’s charging me 29% APR (Annual Percentage Rate – i.e. interest). The next one is charging me 24%, while the final one is charging me 16.9%.
The good thing is, my other expenditure is quite low, so I will actually have spare money to put towards my payments – which means I can afford to overpay one of them each month. This in turn will mean I can become debt free sooner, meaning I will have more money to spend on my family next Christmas.
If you are in a similar situation to me, it might be a good idea to improve your debt management skills too. If my financial plan works, I will be debt free just before next Christmas. This is because I will be overpaying my debts. However, if I don’t overpay my debts it means I will only become debt free around the following September – which is still pretty good going.
Basically, my motivation is that the sooner I clear my debts, the more money I will have in my account to spend on other things (sensibly, of course). You should give it a try…
For more on debt management and help managing your money, visit this site.