Common mistakes when reducing debt

some basics to know mistakes when trying to get out of debt:

"With a large percentage of the population staring down thousands of dollars in debt, the notion of debt reduction is at the forefront of their minds. There are many mistakes that people tend to make while they are trying to reduce their debts. For the most part, if you have already buried yourself under a heap of credit card debt, chances are that you tend to make mistakes with your finances. The most common debt reduction mistakes that are made are; paying the minimum amount on all credit balances owing, trying to pay off one credit card at a time, transferring credit card debt from one credit card to another, and cancelling credit cards once they are paid in full.

The most common mistake made when trying to reduce your debt is to pay the minimum amount owing. Whether or not you pay the minimum on all of your cards or not, this is the least effective way to actively try and pay down your existing debts. The minimum payment only covers the interest for the month, barely touching the principal owing. This makes it nearly impossible to take off any substantial amounts of your debt, and can keep you swimming in mud. Always pay as much as possible on all of your credit card debts (paid in full is always the best option, but if not possible, pay at least double the minimum). Another problem with paying the minimum is that the interest is charged on the full amount owing, regardless of how much you paid off."

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Thanks for the article, aparently ive been going about this all wrong!


as usual great advice and needed in this climate

as always loving thoughts and positive vibes
D :)

glad this is helping people. ive got another post about myths too.