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Step 1: Pay Off Your Credit Card Debt
The first step to taking control of your financial life is paying off your credit cards. To get started, Suze uses Pamela as an example.

1. Line up your credit cards from the highest interest rates to the lowest. In all, Pamela has 23 credit cards, and Suze places the card with the highest interest rates up top and those with the lowest rates at the bottom.

2. Pay the minimum on every single card to stay current. "Then you have got to find—I don't care if it's $10, $50, $100—you have got to find extra money somewhere to pay on the highest interest rate card. You're paying the minimum on every one. Plus on this one, you are going to pay an extra $50 or $100 a month. I don't even care if it's $10 a month."

3. When the card with the highest interest rate is paid off, put the old payment toward the next card in line. "When this card is paid off, you're gonna pay everything that you had been paying on these two cards to [the third] card," Suze says. Keep repeating this process until each credit card has been paid off.

Use Suze Orman's Debt Eliminator calculator to get started! 

Once your cards are paid off, Suze says you'll be on your way to start saving once again. "Your number one goal is to get out of credit card debt before you [start saving]," she says.
FROM: Best Life Week: Your Money Plan 2009
Published on January 22, 2009
Please note: This is general information and is not intended to be legal advice. You should consult with your own financial advisor before making any major financial decisions, including investments or changes to your portfolio, and a qualified legal professional before executing any legal documents or taking any legal action. Harpo Productions, Inc., OWN: Oprah Winfrey Network, Discovery Communications LLC and their affiliated companies and entities are not responsible for any losses, damages or claims that may result from your financial or legal decisions.


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