Suze Orman's Incremental Approach to Credit Card Debt Repayment

Suze Orman, renowned personal finance expert and best-selling author, has a simple yet powerful piece of advice for anyone struggling with credit card debt: "Don't look at the balance." Instead, Orman suggests focusing on making incremental increases to your monthly payments. This approach, known as the "incremental payment method," can help individuals build momentum and maintain motivation throughout their debt repayment journey.

Orman's advice is supported by financial experts, such as Ben Loughery, a certified financial planner in Atlanta. Loughery emphasizes the importance of "baby steps" in debt repayment, encouraging individuals to make small, manageable increases in their monthly payments. This approach can create a positive feedback loop, motivating people to continue making progress towards their debt repayment goals.

The incremental payment method can have several long-term effects on credit card debt repayment, compared to other methods like the snowball or avalanche methods. First, it can create a sense of momentum and accomplishment, which can be particularly motivating for those feeling overwhelmed by debt. Second, it encourages consistent, incremental increases in payments, which can help individuals form a habit of paying more than the minimum each month. This consistency can lead to long-term changes in spending behavior and a greater likelihood of staying debt-free. Third, it can help individuals develop a better understanding of their spending habits and the importance of paying off debt, providing long-term financial education. Fourth, it can help individuals reduce the amount of interest they pay over time, leading to significant savings, especially for those with high-interest credit cards. Finally, it allows for flexibility and adaptability, as individuals can adjust their payments based on their income and expenses.

To integrate Orman's advice into a comprehensive debt repayment plan, consider the following steps:

1. Acknowledge and accept the debt: The first step is to recognize the debt and commit to paying it off. This can be emotionally challenging, but it's crucial for moving forward.
2. Create a budget: Develop a detailed budget to understand your income and expenses. This will help you identify areas where you can cut back and allocate more money towards debt repayment.
3. Set small, achievable goals: Break down your debt into smaller, manageable chunks. For example, instead of focusing on the total credit card balance, focus on increasing your monthly payment by a small amount, like $20 or $30.
4. Prioritize debt repayment: Make debt repayment a priority in your budget. Allocate as much money as possible towards paying off your debt, while still covering your essential living expenses.
5. Celebrate progress: Acknowledge and celebrate each small victory in your debt repayment journey. This can help maintain motivation and a positive mindset.
6. Build an emergency fund: While paying off debt, it's essential to have a small emergency fund set aside for unexpected expenses. This can help prevent you from falling back into debt if an emergency arises.
7. Stay disciplined and consistent: Stick to your debt repayment plan, and make consistent progress towards your goals. Regularly review your budget and find new ways to increase your payments while cutting out unnecessary expenses.
8. Seek support: Consider joining a support group, like Debtors Anonymous, or working with a financial counselor to help you stay accountable and motivated throughout your debt repayment journey.

By integrating these emotional aspects into a comprehensive debt repayment plan, individuals can better manage their debt and maintain a positive mindset throughout the process.



In conclusion, Suze Orman's advice to focus on incremental payment increases, rather than the total balance, can have a significant psychological impact on debt repayment strategies. This approach can lead to long-term effects, such as increased motivation, consistency, financial education, reduced interest payments, and flexibility. By integrating Orman's advice into a comprehensive debt repayment plan, individuals can better manage their debt and maintain a positive mindset throughout the process.