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Vince’s Credit Card Debt and Debt Strategy

Build Credit and Control Debt

 

Take Steps to Control Your Debt

Using Vince’s credit card debt below (or another) as an example, complete your own online, or download a spreadsheet or PDF.

web xls pdf

Complete your own online


Take a look at how the other people of Building Wealth determined their strategies to build credit and reduce debt.

Vince’s Credit Card Debt

Vince’s Credit Cards

Debt

Interest rate

Monthly interest*

Dept. Store A

$
1,500

22
%

$
27.50

XYZ Bank

$
1,250

17
%

$
17.71

BHA Finance Co.

$
500

19.5
%

$
8.13

Store B

$
250

15
%

$
3.13


*Interest rate divided by 12 months multiplied by the amount of debt.


Vince’s Debt Strategy

My strategy for reducing credit card debt includes:

1.
Check my credit report on www.annualcreditreport.com .

2.
Shop for the best rate on a new major credit card and transfer all my balances to that card.

3.
Cut up the other credit cards and use the interest I save to pay down my principal balance sooner.


Back to Chapter 4

From Chapter 4: Build Credit and Control Debt