Skip menu
Oklahoma Money Matters
Modules

Learn how to make your money matter in every stage of life! From buying a car or house, to getting married and having kids – our modules walk you through these big decisions and can give you the tools you need to make informed financial decisions.
Check out all of our modules!

Ask OKMM

Ask OKMM button
Have a burning question about money management? We have answers! Click the button above to submit your question and visit our archives of Ask OKMM responses.

Thinking About College?

OCAP and the State Regents offer information and resources to help you plan, prepare and pay for college.

UCanGo2.org


Did you know that if you qualify, the Oklahoma's Promise scholarship program will pay your college tuition?
Oklahoma's Promise logo


Financial Planning


Links External Links open in new window

Excessive Credit Card Debt


If used properly, credit cards aren’t bad for your credit rating. In fact, making timely payments on a credit card with a low balance actually reflects positively on your credit history. However, if some poor choices along the way have resulted in unmanageable debt, you must take corrective action now.

Loans and credit card debt are serious obligations. Late payments are reported to credit bureaus and reflected on your credit report. Defaulting on your loans can lead to many unhappy consequences, including wage garnishment and legal action against you. Bankruptcy, which is more difficult than ever to claim and doesn’t always cover all debts, will show up on your credit report for many years.

Negative information on your credit report will significantly affect your ability to qualify for credit in the future. f you can’t make a payment, contact your lender immediately. Most creditors will work with you if you’re serious about staying on track, but you must communicate with them.

Debt Snowball

A good approach to reducing excessive debt is a process some professionals call the “debt snowball.” Here's how to tackle your excessive debt with the Debt Snowball:

  1. List your debts in order from smallest to largest with the smallest balance first.
  2. Then, dedicate a set amount of money to debt removal each month. (In the example below, we use $200.)
  3. Next, while still paying the minimum payments on all other debts, add your extra lump sum to the minimum payment for the debt with the lowest balance.
  4. Repeat each month until that debt is paid off, then start again with the next lowest balance.

The chart below illustrates this principle. See how quickly payments on your smaller debts will “snowball” to eliminate your large debts?

Debt Snowball
Debt
Total Owed
Regular Payment
Regular + Extra Payment
New Payment
Target $450 $25 $25 + $200 $225
Shell $600 $40 $40 + $225 $265
Mastercard $850 $75 $75 + $265 $340
Parents $1,200 $150 $150 + $340 $490
Car $8,000 $350 $350 + $490 $840
School $12,500 $500 $500 + $840 $1340

If your debt has grown into a situation you can no longer handle, talk to a non-profit credit counseling service. A credit counselor can help you identify all of your credit obligations and contact lenders on your behalf to develop a reasonable repayment schedule. For more information about credit counseling services, contact a nonprofit provider: