Things You'll Need:
- Pen and Notebook
- Credit Card Bills
- A Desire to Learn Better Credit Card Debt Management Skills!
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Step 1
TRACK ALL SPENDING. The first step to getting out of debt involves tracking spending for a period of time. Tracking spending for a period of about two weeks works well for most people.
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Step 2
IDENTIFY AREAS WHERE YOU CAN SAVE MONEY. We'll need as much money as possible to pay off credit cards and other high-interest debts. So start by adopting better spending habits as a way to save money. Are you spending $5 a day on Starbucks coffee? That's $1500 a year that could go toward paying off credit card debt! Are you buying a soda every day? That's about $600 a year just on soda! Identify areas where you can save money. It doesn't mean swearing off coffee or soda. Look for more economical methods, like brewing your own coffee and buying 2-liter bottles of soda from a wholesale store like B.J.'s or Costco.
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Step 3
SHOP SMART. Save more money by using coupons and buying items when they're on sale. Shoppers can reduce grocery bills by 1/4 or more by visiting coupon websites for printable grocery coupons, by coupon clipping and by stocking up on necessities when they're on sale. The more money saved on groceries and other vital purchases means more money will be available to pay off credit card debts.
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Step 4
FIND EXTRA INCOME. Turn an arts and crafts hobby into a source of revenue. Do yard work or offer handy-man services for elderly neighbors on nights and weekends. If you're a decent writer, learn how to write for the web and earn money working from home by writing online for websites like eHow and Suite101. Get creative. The more money you can get to pay off credit cards means you'll be able to get out of debt that much sooner.
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Step 5
STOP USING CREDIT CARDS WHEN YOU'RE TRYING TO GET OUT OF DEBT! Use cash for all purchases. Remove most of the credit cards from your wallet; leave one low-interest credit card in your wallet for emergencies and keep the rest at home. It's impossible to get out of debt and pay off credit cards if you're running up the balance.
