Why is the credit card payment challenge so low?

[2moretrees]

I was just wondering why you made the amount for paying down credit card debt only $20 as part of the challenge. It seems to me that we will be saving much more money than this so a larger portion should go toward it.

You say in the guerrilla debt tactics that we should pay 10% of our pay. Why such the big difference and which one is correct?

[jeffrey]

It's a good question. I'm starting out the credit card payment at $20 a month in the same vein as we are taking baby steps all along. $20 paid over the minimum payment is that first step. As we do more of the saving challenges and everyone's confidence in saving gets stronger and stronger, paying down more will make sense.

Of course, if you save more than $20 and see that using the extra savings to pay off more than $20 in credit card payment debt is valuable, by all means pay off as much as you can. You won't find a better investment around.

Look at the $20 a a bare minimum. If everything goes wrong...the car breaks down, there is an unexpected doctor bill and a window gets broken, you still should shoot for paying off $20 over the minimum. If you can do more, all the better!