Things You'll Need:
- Tons of determination
- A small amount of effort
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Step 1
Only make purchases with cash - This is a simple but extremely effective method to erase credit card debt. If you do not add to your existing balance, it will be easier to reduce the debt that you already have. Make it a rule! No cash = No Purchase!
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Step 2
Create a budget for each paycheck - The main complaint I here about creating a budget comes from people who have irregular income (i.e. sales people). Every time you get paid, create a budget that spends your paycheck on paper BEFORE you really spend it. Aim for a zero-balance budget to ensure that you have control over all of your dollars.
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Step 3
Buy only assets that increase in value - I call this the "No New Car Rule". New cars, and assets that go down in value, can be considered a complete waste of money. Purchase a used car and let someone else pay the depreciation for you.
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Step 4
Pay off your smaller balances first - When developing your budget, attack the smallest debt first with any additional money available. Paying the minimums on the remaining credit cards, while attacking one debt at a time, will help you erase credit card debt faster.
Comments
edwardvance said
on 10/25/2009 Super article on erasing credit card debt. Especially like the part about paying off small balances first...
5*
goldiec said
on 8/18/2009 Great article on how to erase credit card debt!5*
DiscountTickets said
on 8/7/2009 Very important information, great article.
Muzikpeach said
on 5/14/2009 Good advice, but I tend to pay off the higher interest cards first. Good rules to live by (now that my car is paid off!) 5*
Sounique said
on 12/1/2008 Great tips!