The best way to pay off credit card debt

How To Pay off Credit Card Debt: From the Snowball to the Avalanche Method

The Harvard Business Review has published a story on “the best strategy for paying off credit card debt.” The research, originally published in the Journal of Consumer Research by Keri L. Kettle et. al. benefits the millions of Americans who are literally $1.13 trillion in collective credit card debt according to the Federal Reserve Bank of New York. Those trapped in the cycle of debt could truly benefit from a solution, so it’s worthwhile research.

The researchers (hereafter Kettle & Co.) tested a couple different methods for credit card debt reduction:

  1. Dispersing payments equally across multiple credit cards each month.
  2. Concentrating as high a payment as possible on one account at a time.

Their results were definitive and monumental! Truly a groundbreaking study! At last we know the one true way and light of how to pay off credit card debt!

I jest, of course. Because—say it with me now!—personal finance is personal. If there were one singular, perfect solution to credit card debt, everyone would use it and it wouldn’t be the question that launched a thousand personal finance influencers.

Today I want to break down a few of the different methods that work for paying down credit card debt. I’ll cover Kettle & Co.’s findings, some conventional wisdom from those who have survived debt, and one of the most hated, obnoxious, and ethically questionable men in personal finance media.

For verily, I say unto thee: Even a broken clock is right twice each day.

-The Book of the Bitches, Chapter III, verses 5-6
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Our Final Word on Student Loan Forgiveness

I’m boldly labeling today’s post our final update on student loan forgiveness in America.

Yes, I could seal the deal by titling it “Final FINAL Update On Student Loan Forgiveness V2_2.” But that feels unnecessary. It’s implied.

We’ve written a lot about student loan forgiveness. As a campaign promise, we loved it, but had zero faith it would ever happen. When the pandemic hit and it improbably grew legs, we were shocked and elated—though still skittish. After all, it had been so long since we had unreservedly great news to share with our readers. Like a houseplant that’s been given too little water, too much water, too little sunlight, or too much sunlight, the politically optimistic part of our brains withered and turned brown years ago!

Even as the policy details came out and the application for student loan forgiveness went live, we kept nervously casting about for the cameras recording our joy for a cruel prank show.

And sure enough, we stand before you today, picking banana cream pie out of our hair.

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Season 4, Episode 4: “I’m $100K in Student Loan Debt and I Think It Should Be Forgiven. Does This Make Me an Entitled Asshole?”

Federal student loan forgiveness has been through a lot recently. She’s not looking pretty. She needs a massage. Her T-zone is breaking out. Which means this article does not reflect the current state of loan forgiveness. We’re leaving it up because we think it contains useful context. But if you want our most current news on student loan forgiveness, you can find it here.

In the superhero origin story of Bitches Get Riches, student loan debt was our very first super villain. Only through defeating it did we become the Bitches, mighty warriors for truth, justice, and the debt-free way.

And since that legendary victory, we’ve had a lot to say about student loan debt: how it’s a uniquely predatory form of debt, how hard it is for many to escape, and why those desperate enough to get into student loan debt shouldn’t feel ashamed for wanting a way out.

So it should surprise no one that in the debate over whether or not federal student loan debt forgiveness should be a thing, our position is a resounding hell yes.

This week on the podcast we let out all the repressed rage we’ve been holding in at those who say things like “I don’t want to pay for someone else’s education,” and “I paid my student loan debt and so should you.” So tune in (or read the transcript below) to rage-scream with us!

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Season 4, Episode 3: “My credit card debt is slowly crushing me. Is there any escape from this horrible cycle?”

If thinking about credit card debt puts a terrible feeling in the pit of your stomach, we get it. We all live in a world where the cost of living keeps climbing while minimum wage remains frozen in carbonite. Everybody’s out there trying to find ways to make up the impossible difference. Unsurprisingly, consumer debt is at an all-time high. And a lot of people struggle silently as their money struggles mount.

The good news? Well, there’s not much, but there is this: you are not alone. So many people experience the same confusion, frustration, dread, and shame that you do. Nobody plans to enter a cycle of insurmountable credit card debt. Shit happens, and it happens to all of us.

More good news? You aren’t doomed to stay in credit card debt forever. There’s a path to climb out of the chasm of despair that is consumer debt. Now, this path is no escalator. Depending on how bad your situation is, it’s a steep staircase at best (at worst, bring your crampons). But as two people who climbed that difficult path ourselves, we have a lot of advice and encouragement to give.

Climbing out of credit card debt like

If you’re in credit card debt and you don’t want to be, listen to today’s episode. And if you’re good, share this article with a friend who might be struggling. It’s a friendly and compassionate introduction to the basics of getting out of credit card debt.

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Buy Now Pay Later Apps: That Old Predatory Lending by a Crappy New Name

Years ago Kitty and I did an interview with Glen James from My Millennial Money, a podcast out of Australia that answers the question “Will I ever get tired of listening to men with Australian accents talk about everything from true crime to investing?” (And that answer, to be clear, is a resounding haaayl nah.) You should listen to it! It’s great!

At the end of our conversation, Glen hit us with a curveball. “What do you think of Afterpay?”

“I don’t know her,” said we. And Glen, who is clearly gifted with The Sight, answered cryptically, “Ah. So it hasn’t made it to the States yet. Good luck, mates.” And then we asked him to say “1999” and giggled incessantly.

Flash forward to the present. Not only have we now heard of buy now pay later apps like Afterpay… we fucking hate them. Which means it’s time for another installment of Piggy Rails Against a Financial Outrage for 2,000 Words Or So.

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2022 Student Loan Forgiveness FAQ

The 2022 Student Loan Forgiveness FAQ You’ve Been Waiting For

Federal student loan forgiveness has been through a lot recently. She’s not looking pretty. She needs a massage. Her T-zone is breaking out. Which means this article does not reflect the current state of loan forgiveness. We’re leaving it up because we think it contains useful context. But if you want our most current news on student loan forgiveness, you can find it here.

When I heard that President Biden was pushing through a massive federal student loan forgiveness initiative, I knew exactly what I had to do. I dropped what I was working on and immediately grabbed my phone.

I texted Piggy, my coblogger, to let her know what truly mattered in this situation: that I was right, and she was wrong, neener neener neener.

You see, back in March of 2021, I wrote a case study dissecting an IRL friend’s financial situation. In editing my article, a disagreement surfaced between Piggy and I over the likelihood of student loan forgiveness. She considered the possibility of $10K in student loan debt cancellation so remote that she strongly pushed me to remove it from the article altogether. We settled for explaining both our stances in editorial notes, which you can still read here. (Piggy: In my defense, I’ve heard this campaign promise since I was a starry-eyed 17-year-old college applicant at a John Kerry for President event.)

But I was right. As I always am! I’m a seer, a sage, a prophetess. If I had letters tattooed across my knuckles, they would say TOLD and YASO. I am Samuel Gerard, United States Marshall, ruff ruff ruff!

Okay, okay, gloating aside… A big chunk of federal student loan debt is indeed being canceled. At long last, Cancel Culture is ASCENDENT!

I know our readers have a ton of questions about how this student loan forgiveness package works. Follow me, dear children, and I will answer all of your questions in a rapid-fire FAQ.

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Credit Card Companies HATE Her! Stay Out of Credit Card Debt With This One Weird Trick

Kitty was once at an event where a credit card company was hawking their new cash rewards credit card. The credit card rep excitedly told her about all the cash back rewards she could earn by using the card, and how the interest wasn’t even “that bad!”

But mama didn’t raise no fool. Instead of falling head over heels for low interest, Kitty asked, “But what if someone pays off the credit card debt in full and on time? Will they still get the rewards?”

“Ah,” the credit card rep sighed, “we call those people deadbeats.”

A deadbeat, Kermit.

That’s right: deadbeats. Credit card companies fucking hate people like Kitty and I. And that’s exactly how we like it!

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{ MASTERPOST } Everything You Need to Know about How to Pay off Debt

{ MASTERPOST } Everything You Need to Know about How to Pay off Debt

You’ve passed the trials. You’ve fought hard and won your place among the champions. At long last, it is time to be inducted into the Secret Society. Which secret society, you ask? It’s a secret.

As you take your place among the robed and hooded figures in this subterranean chamber, you know not what to expect. They are lit only by the flames of an ancient fire.

One by one, the hooded figures raise their arms to the stalactites above and intone:

Let us pay off debt, brothers and sisters!

Elmo amid the flames, presumably chanting "pay off debt."

Darling readers, debt fucking happens. Having debt doesn’t mean you’re a bad person, nor that you’re lazy or stupid. But it is something you’ll have to work hard to get past. So here is our collected advice on the subject of how to pay off debt.

Go forth and conquer, for you are soon to be debt-free!

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Dafuq Is Interest? And How Does It Work For the Forces of Darkness?

Dafuq Is Interest? And How Does It Work for the Forces of Darkness?

Here at Bitches Get Riches, we’re constantly extolling the virtues of compounding interest, which Albert Einstein, Mother Theresa, and Nelson Mandela all deemed the Eighth Wonder of the World.* This might lead personal finance novices to believe that interest is universally a great and wealth-building thing. Not so, dear readers. Not so.

Just as interest can work for you, contributing mightily to your financial goals over a long period of time, so it can spell your very doom. DOOM.

Like a monetary Dr. Jekyll and Mr. Hyde, interest has both your best interests (see what I did there?) and your utter financial destruction at its heart. Let’s explore its dual nature with a healthy dose of hyperbole, shall we?

*Not intended to be a factual statement

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Case Study: Held Back by Past Financial Mistakes, Fighting Bad Credit and $90K in Debt

Case Study: Held Back by Past Financial Mistakes, Fighting Bad Credit and $90K in Debt

Hi, it’s me again—your Good With Money Friend! It’s time for another case study. This time we’re talking about how to recover from past financial mistakes.

You guys really enjoyed our first case study. It tackled problems related to student loan debt, employment instability, and paying through the nose for rent in a high cost of living area. I’ve been hoping to do another one, but all of my friends’ most recent money issues have been too specific to their situations to be helpful to a broader audience.

Until now!

A friend reached out, asking for help repairing her damaged credit score. So she scheduled a 30 minute call with me to discuss her options, because I’m literally that bitch.

Obviously it turned into a ninety-minute call, mostly because I love the sound of my own voice. (Vocal fry ’til I die!) But really because the more we talked, the clearer it became that her credit score wasn’t her main enemy on the battlefield for financial stability. It was like a machine gun a mile away: an easy threat to identify, making a huge racket and scaring the shit out of everyone, but not actually that threatening in her present circumstances.

If you’ve struggled with debt, or you want to hone your Good With Money Friend skills, read on. Hopefully hearing about her situation will help some other folks!

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