Eliminate Your Credit Card Debt - The Best Way to Wipe Out Your Credit Card Debt

Are you financially in over your head and really want to learn how to eliminate your credit card debt? There are many credit card debt solutions available to you in the marketplace. It's hard to deal with your debt and figure out which solution is right for you. In this article, you will discover the best do-it-yourself method to wipe out your credit card debt.

Before we look at the best way to eliminate your debt, you need to realize that there is light at the end of this tunnel. Many people have been in as much credit card debt as you. Some have been in much more. But they were able to pay off their credit card balances and are now free of credit card debt. By following the information in this article and taking action, you too can eradicate your debt.

Here's Your Plan For Eliminating Your Credit Card Debt

Here's your debt elimination strategy. Its a 5 step plan designed to wipe out all of your credit card balances and keep you out of credit card debt. It might not be for everyone, but its been proven to work for those who are motivated to get out of debt.

1. Get yourself started by organizing your credit cards and creating a chart that lists (a) the name of the credit card, (b) the balance owed as of the last statement, (c) the APR, (d) the minimum payment due and (e) the due date. Place your chart where you can see it daily.

2. Now that you've input all the information regarding your credit card debt into a chart, its time to take a cold, hard look at your monthly cash flow. Is your monthly net income enough to make all of the minimum payments on your credit cards? If it is, let's move on to the next question. Is your net income enough to make twice the minimum payments on the credit card with the highest APR? If you don't here are a few ideas to increase your income: (a) increase your withholding exemptions on your W-4. Before doing this, check with your tax person to make sure this move won't put you in hot water at tax time; (b) if you're eligible for it, work some overtime and deposit your earnings from it in an account earmarked for extra credit card payments; (c) if working overtime isn't possible, look for some legitimate freelance or work-from-home opportunities; and (d) consider selling consumer items that are just lying around collecting dust on eBay or Craig's List.

3. To maximize your ability to make extra credit card payments, review your monthly expenses with an eye to cutting out the fat from your budget. Don't try to tell yourself your budget doesn't have any, every household does. If you're serious about wiping out your credit card debt, you'll find it and cut out some, if not all of it. Need some ideas? Bring your lunch from home, instead of eating out. Cut down the minutes on your cell phone plan. Switch from cable television to satellite television and drop those premium channels. Shop at discount stores and don't be ashamed to use coupons. Shop online for cheaper insurance rates on your car and home. Definitely look for insurers offering multiple line discounts.

4. Now that you've amped your income and slashed expenses, its time to put this credit card debt elimination plan into high gear. Looking at your chart, start with the balance with the highest interest rate and pay twice the payments due on that card. You will continue to do this until you've paid off that credit card. With the other cards, you will pay the minimum payments. After you've paid off the most expensive credit card, start paying down the the next most costly credit card debt. This time you will pay the minimum payment on that card plus the payment you made on the first card balance. Continue the same process with the remaining cards until you've wiped out all of your credit card debt.

5. To make sure you remain free of credit card debt, you need to change the way you spend your money and more importantly, you'll need to change the way you use your credit cards. Control your impulse shopping and stop looking for immediate gratification. You don't have to live a ho hum life with no enjoyment or live on peanut butter and jelly sandwiches to make this work. You just have to learn how to make better financial choices when it comes to credit cards.

This credit card debt elimination plan might call for you to make some tough financial decisions. But by making the right choices, staying motivated and following through with action, you will be able to wipe out your credit card debt and remain debt free.