Are you owing thousand of ringgits on your multiple credit cards? Do you feel overwhelmed with these debts and you don't know what you can do with it?
No worries. I was in your same situation and I almost reach the end of my little journey to clear all these debts I have on my credit cards.
Yes, it can be done and I am going to show you exactly what I have done and why it is effective.
Overall, I have debts of more than RM 5000 when I decided to do something with it.
I came across a method call the debt-snowball effect and now, I am more than halfway to my goal of no debts on my credit card.
So, how does this debt-snowball method works?
Start by listing down all your credit cards debt. Every month, when you receive your salary, allocate enough money to pay the required minimum payments and all your additional money, use it to pay off the smallest debts (by Ringgit amount). Once you have clear it, move on to clear the second smallest debts and so on.
So, if you have 4 credit cards with the different amount as below:
Card A - RM 450
Card B - RM 1100
Card C - RM 2100
Card D - RM 300
Your first aim is to clear Card D, followed by Card A, Card B and finally card C.
Do note that you may end up more in interest charges but the instant satisfaction of eliminating one of the debts will help you to continue moving forward.
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