How to Eliminate Credit Card Debt Fast
The average American family is bogged down with credit card debt. They often struggle to pay off creditors in addition to regular bills. The only way out of this debt dilemma is to stop the behavior, change your spending habits and eliminate debt as quickly as humanly possible.
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Instructions
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Analyze your budget. Decide how much additional money you can put towards paying down debt more aggressively each month. Cut out your luxuries. For example, if you like to drink Starbucks coffee each morning, brew your own at home. Instead of eating out, put that money towards paying off your debt.
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Gather all of your credit cards into a pile. Shred or cut them up. If you've committed a card number to memory, order a new one with a different number from your creditor and then shred it up immediately.
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Determine which card has the highest interest rate and put all of the extra money you can towards paying off that one card. The more additional money you can contribute each month to this account, the faster you will eliminate credit card debt. Continue to make the minimum payment on your lower interest rate cards.
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Once the highest interest rate card is paid off (which could take months), move down to the next highest interest rate account. Put all of your additional earnings towards this account until it is paid off and continue this cycle until all of your cards are paid off.
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Tips & Warnings
If your debt is extremely excessive ($20,000 or more) you may want to look into debt management plans. With this type of plan, you are assigned to a lawyer who negotiates your debt with your creditors and can sometimes cut your bill down substantially. Go with a reputable non-profit consumer credit counseling service.
Resist the urge to spend by staying clear of shopping malls and department stores. Don't cheat when it comes to the step where you cut up your cards; not even one should remain. This is a very important step to take when you are making a serious commitment to eliminate your credit card debt.
