STEP THREE

Once the lowest credit card debt is completely paid off, concentrate on the second lowest credit card. After the credit card balance at the tip of the pyramid is paid off, add the minimum monthly payment of the first card to the minimum monthly payment of the second smallest credit card. For example, if the minimum payment on the first position was $40 and the payment for the second card is $55, then your monthly payment to the second credit card would be $95 ($40 +$55 = $95). The benefit of using this step is that the minimum payments are already allocated into your budget. Thus, no additional money is reallocated to pay off outstanding debt. Plus, you are paying more money towards your second credit card debt.

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