How to “Save10” to Pay Off Credit Card Debt
Updated: Mar 19, 2020
We love the idea of you getting your money back from high-interest payments and getting your freedom back by making monthly payments to your future, not the future of the owners of the credit cards.
How to Calculate Extra Payments Toward Debt
1. Gather up all those statements. Get ‘em all. Look at them. Tell them as a group that as you pay them off, one by one, those statements will get burned. Not to be replaced. This is war.
2. Second, roll up your sleeves. I am going to make up some numbers for this exercise, so you can follow along.
Let’s assume you make $60,000 per year; 10% x $60,000 = $6,000
You make monthly payments on the credit card, so you’re “saving” 10% into the credit card via extra payments, which would be $6,000 / 12 = $500 per month.
Here is a simple calculator I found to quickly do the math: https://www.calculator.net/debt-payoff-calculator.html
Ignore the super jargon talk at the top. Just scroll directly to the Debt name and start plugging in your credit cards, minimum payments, and interest rate.
Then plug in your monthly “savings” in the “extra payments” field. Remember, you will continue paying your monthly minimum payments. We do not consider your minimum payments as “savings.”
Next, hit calculate, and in this example, with the extra $500 payments, the 2 credit cards would be paid off in 12 months, at which point you can shift your 10% savings to retirement/building an emergency fund and building YOUR future (not the credit card company’s future).
3. Finally, send a video to the Save10 Facebook group, showing you destroying those statements as you make your last payments. You won’t have a more enthusiastic group of supporters. We are all in this together!