The Ladder System of Credit Card Debt Relief

The Credit Card Debt Relief "Ladder System"

This is the single most popular payoff system. If you ask, any financial advisor will recommend it as the best system available for paying off credit card balances.

First you make a list of all your credit cards. Then sort the list by interest rate putting the card with the highest interest rate right at the top of the list. The lowest interest rate cards go at the bottom.

Then make only a minimum payment on all cards except the card on the top of the list.

The credit card with the highest interest rate gets all your other disposable income. Pay as much as you can each month. Every penny over the minimum monthly payment will in effect cut into your overall debt and act to get you out of credit card debt in record time.

Read your monthly statements carefully and you'll soon see the impact your payments are having. This should motivate you to scrimp and save every penny you can to make that payment as substantial as possible. When that high interest credit card is finally paid off, move on to the next highest interest rate card etc...

It goes without saying that you should stop making purchases on any of your cards. But if a genuine emergency should arise and you need to use one of your cards, use the lowest interest card you possibly can.

Of course, you have some options when it comes to paying off the most expensive card. You could watch your mail for new card offers and transfer some or all of the balance to a new card with a much lower interest rate.