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Financial Spring Cleaning Tip Of The Day: Cut Your Debt In Half By The End Of The Year

Find an extra $20 per week for the remainder of the year, and put it toward debt reduction. Not worth the trouble? Consider this: If you currently owe $1,000 on a credit card, have an Annual Percentage Rate of 18 percent, and are making a minimum monthly payment of 2 percent of balance, even if no further charges are ever added to the account, you won’t have that $1,000 paid off for 12 years. You don’t want to still be paying for 2011 charges in 2023. Adding that extra $20 per week to your minimum payment almost cuts your debt in half by the end of this year.

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