Get Rid of Credit Card Debt and Prepare Emergency Funds
A quote from the famous financial planner Suze Orman. In the quotation, he firmly gave a solution so that we could be free from credit card debt bondage: Pay off Credit Card Debt and Prepare Emergency Funds. How to pay it off?
Regan has a way that can help you pay off credit card debts, namely:
- During the process of paying off credit card debt, try not to use a credit card first. If you continue to use credit cards, your burden to pay off credit card debt is increasing.
- Create a list of credit cards and debts of each credit card.
- Sort from the smallest to the largest debt.
- Focus on paying off credit card debt with the smallest amount of debt. The rest pay a little above the minimum payment. For example, the minimum payment of credit card A is IDR 300,000, you are advised to pay above IDR 300,000.
- Do steps 3 and 4 until the smallest amount of credit card debt is paid off. Continue steps 2 to 4 to pay off other credit card debts.
- If you can already pay off your credit card debt, start preparing an emergency fund. Don’t use credit cards for debt to buy goods or consumptive needs.
If you have succeeded in paying off debt – then credit card debt? As Suze Orman said, our goal is to pay off credit card debt and prepare an emergency fund. We must have a reserve fund of 6 – 12 times monthly expenses, as an emergency fund.
Pay immediately or pay off credit card debt and prepare an emergency fund. The use of a wrong credit card can damage the family’s financial condition. Use credit cards wisely (read: credit cards not for debt).