The Fixed Payment Systems | Credit Card Debt Relief Secrets

The "Fixed" Payment System

One of the most popular payoff systems is the "Fixed" payment system. Under this system you decide on how much you can pay into each credit card. This payment should be affordable for you as you'll be making exactly the same payments for a full year.

The fixed amount should be somewhere around double the minimum payment or at least double the monthly total finance charges. Then stick to the flat payments for the entire year. As always pay more into the highest interest rate credit cards and somewhat less into the credit cards with the more modest interest rates.

Every penny you pay that is in excess of your finance charge is subtracted from your principle which then increases the impact each future payment will have. Most uninformed consumers think that paying the minimum payment is all they have to do to retire their debt. It's true but few people realize how long it will take. If your finance charge equals your minimum payment - you'll be paying FOREVER!

As your monthly minimum payment steadily declines, each fixed payment will be paying off more and more of the outstanding balance principle. Just keep making the same fixed payment – no matter what.

Try to get excited about what it's going to feel like to be debt free. This is a goal, a good positive goal. When you get there you will know that it's worth all the time and effort.

After it's all over you can brag about your accomplishment to friends and family (but don't expect them to be overly happy for you, as most of them will still be stuck deep in debt - but they will respect your feat!)

When you are making a large purchase of any kind, ask the salesman if there area any special credit card deals. A friend was buying a riding lawn mower with a price tag of $2,000. He asked and was shocked when the salesman offered him a zero interest rate six month deal with a long term 9.99% interest rate if he charged it on a MasterCard.

These deals are partially funded by the dealer as it makes his job easier. But he may or may not volunteer the information unless you ask (or tell him you can't afford to buy right now).