DEBT SNOWBALL PLAN

Do you have credit cards? How much do you owe from them?

Here are some tips on how to pay-off your credit card bills:

1) List all the balances on each card. Then follow the debt snowball plan of Dave Ramsey.
ex. CARD 1 = P5000
CARD 2 = P 8500

2) Pay the minimum amount on both cards then add additional payment to the card with the lowest balance. By this way, you will be eliminating first the card that you have the lowest debt. Given you have budgeted P2000 to pay your monthly credit card bills and the minimum payment for the each card is P500.

ex. CARD 1 = P 5000 -500 -1000= P3500
CARD 2 = P 8500 - 500 = P 4500

3) Do this every month until you fully pay CARD 1. When done so, pay all the P2000 to CARD 2 until fully paid.

4) Be sure that you will not add any purchases using credit card so that you will achieve your goal of eliminating your credit card debts.