It is not necessary to get professional help to manage and repay your credit card debt. So, if you have been thinking that the only way to get out of your credit card debt is to find a suitable debt relief organization, then you are wrong. There are effective DIY strategies which can help you pay back your credit cards, which in turn will also help you manage your cards effectively. Go through the following article to know how avalanche and snowball strategies can help you make a fresh start to manage your credit cards in a better way.
Following the snowball strategy
Before following this strategy you need to know that this method is helpful if you want to motivate yourself to repay the outstanding dues on your credit cards. First of all, list your debts from the lowest balance to the highest one.
In the second step, from the next month onwards, pay the minimum on all your cards except the one with the lowest balance. What you do is, pay little more (it is better to pay as much as you can) on the lowest balance card.
When you repay the entire balance on your lowest balance card, replace it by the next one in your list, that is, pay more than minimum on the card with the second lowest balance in your list.
Following this strategy will help you repay all your credit cards one after another.
Implementing the avalanche concept
The first step is common in both these strategies, only in this method, you need to list your credit cards from the highest interest rate to the lowest one.
Then, try to pay as much as you can on the credit card with the highest interest rate while continuing making minimum payments on all the other cards.
After paying off the highest interest credit card debt, repeat the same strategy with the next highest interest credit card in your list.
It will help in your financial position if you can implement this strategy because you can save the amount as you're paying off your highest interest credit card debts first.
To make any of these above 2 strategies successful, you need to save more in comparison to what you have been saving every month for so long. This will help you repay your credit card debt faster and you will have complete hold on your credit cards again and organize your financial life the way you want to.