How to Eliminate Credit Card Debt

Are you in debt? Do creditors call you and hassle you when you are late? It is difficult these days to get these cards paid off, but it is possible. Here are a few tips to help you get your credit in order.

Instructions

Difficulty: Moderately Challenging

1. Stop using your cards! PERIOD!
2. Put your cards in a bowl in the freezer with frozen water. This will stop you from using them.
3. Do not pay late. Your APR (Annual Percentage Rate) can jump 10 points or more when you make a late payment.
4. Call your creditor every 3 months and ask if there are any lower APR offers. Even a 2 point difference can help.
5. Pay a few dollars or more over your minimum payment each month. Anything over the minimum goes straight to principle.
6. Pay more on the higher interest cards. These are the ones you want to get rid of first.
7. Do not accept a credit increase if it will cost you. It is not worth it. If you are this desperate it is even more important to pay them off.
8. If you are offered a credit line increase and there are no additional charges, take it, as long as you are positive you can control yourself and not use it. This will increase your credit to debt ratio in a positive way and help you lower interest rates.
9. If you receive money that is disposable, do not spend it on useless toys. Pay off the cards. In the long run this will make you much richer, so you can afford those toys.
10. For every dollar above your minimum payment that you pay off on your balance, add that same amount to a savings account specifically geared towards paying off your balances. At the end of 6 months take those accumulated funds and apply them towards the highest interest credit cards.
11. Keep a large desk or wall calendar and record any payments, phone calls, or other actions on all accounts. Organization is key!
12. Do not give up. It is difficult to get this done. You will be on the phone with these creditors quite a bit, but in the long run, it pays off, literally.