How to Eliminate Credit Card Debt

Average credit card debt continues to rise. Cards arrive in the mail unasked. No wonder. It is big money for the lenders and highly tempting to the users. Problem is it often turns into a financial mess. The more that's charged, the higher the fees until the household budget is enslaved to the card. When that happens it's time to eliminate the debt.

Difficulty:

Moderately Easy

Instructions

1. Begin by not using any credit cards to add more debt. Charge something only in case of an emergency.

2. Look at your cards and choose the lowest balance to eliminate first. Try to pay more on this card. One step at a time work your way from bottom to top. One card is good to keep because in this world things happen, so the card comes in handy.

3. Notice the different annual percentage rates on the cards. If one is lower than the others consider transferring the existing balances to the one card. This consolidates to less paper work and gives a lower overall fee payment from less interest.

4. Use cash when possible. Assess your monthly income and expenses. Compare this with your monthly outlay of payments for the cards, then see if there are items charged on the cards where cash could be used. Each time you pay cash you are saving money from less interest fees!

5. Keep paying more than minimum amounts due. This is a good way to eliminate debt while saving money from lowered fees.

6. Pay on time. The lenders love to add that late fee to your next balance. Keep track of the due dates! Consider auto-payment with your card companies.

7. Declare bankruptcy only as a last resort. This shouldn't be your plan of eliminating credit card debt. It creates other problems.

Tips & Warnings

• Avoid taking a home equity loan to eliminate credit card debt. You don't want to use your home as collateral if at all possible.

• Don't sign up for any more cards.