Creating an Aggressive Credit Card Debt Elimination Plan

by RC on July 21, 2008

As part of Mrs. Micah’s Single Step Personal Finance Challenge, I have decided to get aggressive with paying down my credit card debt. I recently built up an emergency fund, and I have been paying more than the minimum on my credit cards, but it does not feel like enough. I have a pretty significant amount of credit card debt as well, about $13,500 as of a few days ago. It was a little higher several months ago, but I have been taking steps to reduce it, by paying off more than the minimum and not using them except for gas purchases.

So how do I get this credit card debt “monkey” off my back?

Looking deeper in my situation, I have come up with 3 potential “plans” for eliminating my credit card debt:

Plan 1- Normal Payment Schedule – Paying a little above the monthly minimums (which is about what I am doing now)-$500/month.

Plan 2- Above Average Payment Schedule (Stretching it) – By tightening up my budget, trimming expenses, I could probably pay about $1000/month.

Plan 3- Aggressive Payment Schedule- paying over $1000/month, hopefully averaging about $1200-$1500/month.

Since debt elimination is a priority, I am going to follow Plan 3- an aggressive payment schedule, in order to try and eliminate this debt as quickly as possible. I plan on implementing a form of the debt snowball to accomplish this.

So how do I plan on achieving this goal? It is easy to say I want to do it, but where am I going to get the extra money?

First, and most critical, is not to incur any additional credit card debt. This is key.

Work Overtime-I have the opportunity at my job to work some overtime in the coming months, and I plan on taking advantage of this to boost my take home income.

Micropayments or Snowflaking- Taking any additional money,and applying it to my credit card balances as soon as it is available. I plan on selling some items on Ebay, cutting some expenses, and I have a few other ideas on generating more income.

Consider a 0% balance transfer- About $10,000 is on cards with interest rates between 10% and 15%. A 0% balance transfer could save me significant money over the course of the year, but I am not to keen on signing up for another credit card. I will have to look into and think about this one.

By combining the above actions, and following an aggressive plan, if I average $1500/mo in payments, I will have the balances paid off in appx. 9 months. I am going to chart my progress and provide regular updates here on my blog.

Any comments or suggestions?

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{ 3 comments… read them below or add one }

Phil March 31, 2009 at 5:45 am

Excellent strategies and a great inspirational read. You give me some ideas that I had not thought of yet. Keep up the good work!


Holly October 21, 2009 at 9:09 am

I like your plans to eliminate credit card debt. I have already started working overtime to aid in my own fight of debt.


Scott June 1, 2010 at 12:56 pm

Paying off balances of one or two credit cards is manageable. Now if you have to pay off balances on several credit cards – that’s virtually impossible, especially if you only have a fixed income. You can get lucky and receive a windfall; but let’s be realistic – it’s really far-fetched.

So what do you do if you are stuck in a situation where almost all your income is spent paying off several credit cards; but you still don’t see any dent in your total balance and you’re nowhere near your goal to eliminate your credit card debt?

Debt consolidation may be a good option to consider. You have to find a good consolidation program that best suits your particular situation, though. There are many options available to choose from. You can start searching for sources on the Internet.


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