How to Reduce Credit Card Debt With a Pair of Scissors

In order to reduce credit card debt you will have to stop adding to it. By cutting up your credit cards, you will reduce your credit card balance and thus your interest and debt.

Things You'll Need

• Scissors
• Credit Cards

Instructions

1. Before start slicing and dicing, you should set up an account balance that you are going to stick to. If you are going to be using only cash, you don't want to run out at the wrong time. You will need to have a minimum in your account as a backup.

2. Set up a cash budget. You will need a certain amount for food, utilities and other. You will be drawing this amount of cash out at the beginning of every month or pay period. The best way to reduce credit card debt is to stop adding to it and accumulating interest.

3. Use this process for a few months. Once you get the hang of it, you should be able to start saving some money.

4. Cut up your credit cards. You don't need these anymore. You may want to keep one card around just for emergencies. You don't want to get stuck somewhere and have nothing as a backup.

5. Start paying off your credit card debt. There are many different services that you can look into for this. Home equity loans, debt consolidation, and do it yourself, are only three options to reduce your credit card debt.

6. Up to this point you have only been saving money because the budget forces you to spend less and you actually have to think about how much you are spending at a certain time. Now that you have no credit cards, you will start to see even more savings due to the fact that the huge interest fees are no longer there.

Tips & Warnings

• You may need to consult a debt consolidation company if your debt is too high. This may be the best way to reduce credit card debt in your case.