John Kim, co-chairman of Syncis, is a successful businessman who made a name for himself despite his background of poverty. Many Americans who are suffering from the state of the economy are familiar with living in poverty and, as a result of their financial standings, they find themselves in debt. Though credit cards might seem useful when you’re short on cash, the best way to improve your financial standing is to pay off your debt as quickly as possible. The steps below will help you to a debt-free life faster than you imagined possible:
- Examine your interest rates. Look at each of your credit cards and their interest rates. Order the interest rates from high to low. This is the order that will be most beneficial to pay off your credit cards in, starting with the highest.
- Pay off the first card. After cutting all unnecessary expenses from your budget, put as much extra money as possible toward the first card each month. Continue this until you’ve paid it off.
- Start on the next card. Take the money you were putting toward your first card and add it to the payments of the second card. Repeat this until you’ve paid off all of the cards, snowballing your payments higher with each card.
- Avoid future debt. After paying off your credit cards, either close the accounts or cut up the cards, and don’t accept any new debt to your name.