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Credit Card Payoff Account

A Credit Card Payoff Account is an important part of the Defend Your Money System.  This is a dedicated savings account from which you will make your credit card payments each month.  All month long as you assign your charges, Defend Your Money calculates how much you will need in your Credit Card Payoff Account to cover those charges.  

 

At the end of each month, Defend Your Money creates a transfer list to guide you in moving all of the money you have spent using your credit card into this account.  This money is now ready to make your credit card payments whenever they come due.

 

If you have NO credit card debt:

  • Set up monthly automatic payments to come out of this account for all of your credit cards

  • These payments should be for the statement balance, not the minimum balance.   

 

If you are carrying debt on your credit card, you will make two separate credit card payments:

  • One payment from your Bills Account to get you out of credit card debt.

    • This payment should be for the minimum payment plus any additional money you are able to put towards your credit card debt.   

    • Add this amount to your Bills Account Schedule.

    • Set this up as an automatic payment on the due date or before.

  • Another payment from you Credit Card Payoff Account​ to keep you from going any further into debt.

    • Make this payment immediately after you make your Defend Your Money transfers. ​

    • This payment will include all of the money currently in your Credit Card Payoff Account (which covers all of your most recent credit card charges.)

With Defend Your Money and a Credit Credit Card Payoff Account you can relax.  You will never have to worry about  your credit card payments again.