Pay Off Your Credit Cards the Right Way

by | Jun 1, 2023

How to Avoid Debt Dumping

Debt dumping is a common practice and in reality, it is not an effective way to get out of debt. Debt dumping is when you put every last dollar you have into paying down debt, and probably don’t have a clear picture of the amount of money you need to get by in addition to accounting for unplanned expenses that may come up along the way. In many cases, a debt cycle is the end result, which is exactly what people are trying to avoid in the first place.

Here are a few steps to take if you’re looking to pay down debt:

  1. Make a list of credit cards, figure out the minimum payment required by each, and pay the minimum payments on all accounts for one month to gain clarity on spending.
  2. Create a spending plan that allows for necessities like groceries and gas and can accommodate unplanned expenses.
  3. Avoid putting all extra money towards debt.
  4. Stick to the spending plan and begin to tackle debt by paying down one credit card at a time.

By following the steps above, the goal is to stop the cycle of debt dumping and eventually pay down your debt over time.

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