<meta http-equiv="Content-Type" content="text/html; charset=utf-8" />
<meta name="ProgId" content="Word.Document" />
<meta name="Generator" content="Microsoft Word 11" />
<meta name="Originator" content="Microsoft Word 11" />
<link rel="File-List" href="file:///C:\DOCUME~1\ananya\LOCALS~1\Temp\msohtml1\01\clip_filelist.xml" />
<!--[if gte mso 9]><xml>
<w:WordDocument>
<w:View>Normal</w:View>
<w:Zoom>0</w:Zoom>
<w:PunctuationKerning />
<w:ValidateAgainstSchemas />
<w:SaveIfXMLInvalid>false</w:SaveIfXMLInvalid>
<w:IgnoreMixedContent>false</w:IgnoreMixedContent>
<w:AlwaysShowPlaceholderText>false</w:AlwaysShowPlaceholderText>
<w:Compatibility>
<w:BreakWrappedTables />
<w:SnapToGridInCell />
<w:WrapTextWithPunct />
<w:UseAsianBreakRules />
<w:DontGrowAutofit />
</w:Compatibility>
<w:BrowserLevel>MicrosoftInternetExplorer4</w:BrowserLevel>
</w:WordDocument>
</xml><![endif]--><!--[if gte mso 9]><xml>
<w:LatentStyles DefLockedState="false" LatentStyleCount="156">
</w:LatentStyles>
</xml><![endif]-->
<style><!--
<!
/* Style Definitions */
p.MsoNormal, li.MsoNormal, div.MsoNormal
{mso-style-parent:"";
margin:0in;
margin-bottom:.0001pt;
mso-pagination:widow-orphan;
font-size:12.0pt;
font-family:"Times New Roman";
mso-fareast-font-family:"Times New Roman";}
a:link, span.MsoHyperlink
{color:blue;
text-decoration:underline;
text-underline:single;}
a:visited, span.MsoHyperlinkFollowed
{color:purple;
text-decoration:underline;
text-underline:single;}
@page Section1
{size:8.5in 11.0in;
margin:1.0in 1.25in 1.0in 1.25in;
mso-header-margin:.5in;
mso-footer-margin:.5in;
mso-paper-source:0;}
div.Section1
{page:Section1;}
>
--></style>
<!--[if gte mso 10]>
<mce:style><!
/* Style Definitions */
table.MsoNormalTable
{mso-style-name:"Table Normal";
mso-tstyle-rowband-size:0;
mso-tstyle-colband-size:0;
mso-style-noshow:yes;
mso-style-parent:"";
mso-padding-alt:0in 5.4pt 0in 5.4pt;
mso-para-margin:0in;
mso-para-margin-bottom:.0001pt;
mso-pagination:widow-orphan;
font-size:10.0pt;
font-family:"Times New Roman";
mso-ansi-language:#0400;
mso-fareast-language:#0400;
mso-bidi-language:#0400;}
-->
<!--[endif]-->
While charging up your credit
cards, you don’t realize that how big the repayment issue can become. When you
are neck deep in debt and just paying the minimums and nothing else, it is
better that you become serious about how to pay off debt soon.
<o:p></o:p>According to the debt
professionals, the most effective way to eliminate your debts is to knock off
the balance with the highest interest rate in the beginning. When this debt is repaid,
go for the debt that has the second highest interest rate.
<o:p></o:p>You should always remember to settle
the debt with the highest interest rate initially. You must take stock of your bills
according to the interest rates instead of the amount of balance.
<o:p></o:p>You can also adopt an alternative
plan by paying off the debt with the smallest balance first. It can give you
the momentum that you require to follow a pay-down strategy. As soon as those
small balances disappear, you should return to plan A: get the money that has
been earmarked for paying those bills and utilize it towards the debt that has
the highest rate of interest.
<o:p></o:p>The secret of being successful in
debt repayment is sincerely following a useful pay-down strategy. Don’t take a
break from making the minimum payments while you are getting the bills repaid.
<o:p></o:p>You should think prior to doing
something. Analyze your finances and find out how much you can practically manage
to pay on a monthly basis. You should monitor your expenses every day. This
would help you ascertain the amount that you can afford to repay your credit
card debts. Experts recommend that simply paying $50 more per month can be of
great help.
<o:p></o:p>You should try to pay higher than
the minimum. The debts would begin to wane. Paying higher than the minimum not
only pays down the interest but also the principal. It would also shorten the repayment
tenure. You can use the credit card minimum payment calculator to find out how your
repayment term is reduced by raising your payments.