The rule of thumb for debt is that you should be able to create a strategy that allows you to pay back everything you’ve borrowed within 60 payments or less.In other words, you should be able to eliminate all of your credit card debt within 5 years or less.On the other hand, if you have existing balances that need to be paid off quickly, your best bet is to establish in your budget.This is where you determine how much you CAN AFFORD to pay to eliminate credit card debt each month, then you set this amount as a fixed expense in your budget.You should pay the required payments all of your outstanding debts except one, then that extra money that you have allocated goes to making the largest payment possible on one debt. You can start with your highest interest rate first to save money or start with your lowest balance if you want to start eliminating smaller bills to build momentum for your biggest debts.Then once you have all of your debts eliminated, you can start a money management strategy that pays off your credit card debt in-full every month.If you can’t develop a way to do that within the limits of your budget, then you have to seek an alternative means of debt relief.
You pay that amount every month until your debt is eliminated in-full.Also keep in mind that you need to make a targeted strategy that pays off debt in the most efficient way possible if you are carrying month-to-month credit card balances on multiple cards at once.With that in mind, credit card payments are a in your budget, because how much you need to pay off each month depends on how much you charge.In other words, the amount you spend on credit card debt payments each month can vary based on how much you charged that month.Do you know how long it will take to pay off your debts? This handy credit card debt debt calculator lets you determine exactly how long it will take to pay off your debts in-full on your own, assuming you are no longer making purchases on that credit card.
It compares making minimum payments only, versus paying more than minimum or making fixed payments.