A Faster Way to Pay Off Your Credit Cards and Reduce Your Mortgage
Value!
- Posted:
4/6/2009
If you want to pay off your credit card debt more quickly, you must first stop paying by credit card. Cut up or destroy the card, so you can't ever use it again.
You need to set up direct debit payments from you bank account to the credit card company. Instruct your bank to pay a set amount every two weeks. Normally you would only pay a credit card bill once a month. Using what is called
The Eisenson Method, you arrange to pay about half the amount of your regular monthly bill every two weeks.
Each payment reduces the amount of debt, if you continue to make exactly the same payment every two weeks. Within a year you will have paid out more than you would do paying once a month, and you really will
pay off the whole debt in around a quarter of the the time it would normally take. The same method can be used to repay a mortgage in less time. This is known as
Mortgage Acceleration. Your mortgage lender could charge an extra fee if you start making more payments than you are required to do. If you just set your monthly mortgage payment a little higher, you could achieve the same result without being charged an early repayment fee.
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