Aaron explains how to clear credit card debt: switch new spending to a debit card so you stop adding charges, then put any extra money toward paying down what you owe. Knock out small debts first for momentum, then roll those payments into bigger ones.
Debit cards versus credit cards. Hey, it's Aaron from Diagnostics and Finance. Part three is on how you can get rid of the rest of the debt on your credit card. If you've had a $5,000 credit card, for example, and you've moved everything across onto your debit card and now you're free of more money going onto the credit card, maybe a little bit interest because you're trying to pay that off. If you've got a few dollars left over in your budget, you can then transfer it onto that credit card and you will see that balance sequentially decrease over time. So now we've got all our spending onto our debit card, now we can use our surplus money to pay that credit card off. I believe in always looking at motivation when you're paying down debts. If you've got a small debt, pay that off first and then you can take that money you're paying on the small debt onto the bigger debt. So there's a tip on that once you've got your debits across to your debit card and then you can go after your credit card. Alright, it's Aaron. Bye for now.