Eliminate Credit Card Debt

Most people I know have some credit card debt and want to eliminate it, get it out of their lives, and regain control over their finances. Personally, I have a lot of credit card debt and have just begun to try to seriously eliminate it and the headaches that go with it. I would like to pass along to my fellow credit card debt sufferers some tips I have heard along the way and have found to be effective in eliminating my own credit card debt. There are many others, and these definitely haven't solved all my debt problems, but they have been a good starting point for me. Hope they will be for you, too!

First, know numerically what you're dealing with. If you're anything like me, sometimes you feel like your credit card debt is so great you don't even want to know what the actual debt amount is. It's too overwhelming. But the truth is, being stuck in "denial" or "fear" mode will just make things worse. To eliminate your problem situation, don't you have to really grasp what the problem is? Sure, you do! So one big step to getting out of debt is to know how much you real owe. So add it up. Know other numbers, too, like your credit card interest rates, if you're over limit on some cards, and what fees you sometimes pay for being over limit or late. The other key numbers to know are what you spend and what you bring in. If you're in debt, you're spending more than you're bringing in. You will need to deal with that fact if you want to get out of credit card debt.

Which brings up a second piece of advice that's helped me eliminate some of my credit card debt: cut what you spend. One of the first things I did when I really started trying to cut my credit card debt is listen to the reality I've heard on tons of different shows and in magazines and online: stop spending! I looked at what I was spending and realized there were things there which I couldn't afford anymore. I stopped paying for things which, if not exactly luxuries, weren't necessities either. Of course, differentiating between luxuries and necessities is a personal process for everyone, dependent on what each person values and needs most. However, I will say, be tough when you look at what you can cut, because being too easy on yourself may be how you got into the mess you were in.

Here's another thing I tried that actually worked: get lower credit card rates. In my case, this did not involve my calling one of my credit card companies and asking them to lower my interest rate. In fact, the one time I tried this, I was given a big "nope." (But I know other people who've had better luck.) Instead, I found a new credit card offer which had no annual fee, a low APR (provided I paid on time) and free balance transfers (limited time only.) By taking that card up on its offer, I got away from a card with a high interest rate and which I could barely afford to pay. I had no chance of paying anything but the fees and interest off with that old card. With the new one, there's no interest for a year, so I'm already paying on the principal. So, look around at offers or call your own credit card companies, see how you can get cards with lower rates. It really does make a difference. And don't be so stuck in your ways that you're willing to pay a high rate card just because you've had that card for a while. Move that debt to a nicer place and eliminate it sooner. It's still debt, but it's doable debt.

Another tip for eliminating credit card debt? Make a list of your credit cards and pay them off one by one. Start with the smallest one (psychological boost) or the one with the highest interest or balance (biggest money suck) and put whatever extra money you can muster into each card as they appear on your "hit list." In general, I've heard it's good to try to pay off a little more than the minimum balance on all your cards to get ahead of the interest.

Speaking of saving, I know when you're trying to get out of credit card debt and you're living paycheck to paycheck or have had some big emergency expense, it's hard to think of saving money. "What money?!" you ask. I totally get it, because it often sounds insane to me too. These financial advisors ask us to put away three months of expenses. How do we do that when we can barely make ends meet? We can't always, but if you get some money by cutting spending, put some of that money in the bank for one main reason: it will help you never go back into credit card debt by giving you a cushion of cash.
Good luck eliminating your credit card debt! I'll be whittling away at mine, too.