Getting out of credit card debt can seem like an unrealizeable goal. Credit card debt can cause massive stress. Imagine a life without that debt. Can you see it? If you’re like many average families, you may have a hard time getting a clear picture. Many people have been making payments to their credit card company for so long that they can’t envision getting out of credit card debt.
The important truth to know, however, is that it is possible to get out of credit card debt. It won’t be easy to break free from this financial burden, but you can do it. You just need a plan of action and some strong resolve to get started on the path to a life without credit card debt.
Step 1: Stop using your credit cards. You will never make any progress towards getting rid of your debt. Cutting up your credit cards is one way to make sure you don’t use them. If, however, you’re reluctant to get rid of them all, you should at least remove them from your wallet or purse. Keep them in a safe place at home so that using them isn’t convenient.
Step 2: Make the required monthly minimum payments on all of your accounts. Late fees can cause your credit card balances to skyrocket in a hurry. In addition, many credit card companies will raise your interest rate if you miss a schedule payment. You must pay the minimum payment on each account on time every month.
Step 3: Send any extra money you can gather to one credit card company. Why one company? If you concentrate all of your efforts on paying down one credit card, you will see real progress. That progress will help you stay motivated. Paying off the card with the highest rate allows you to save the most money on interest charges. Paying off the card with the lowest balance allows you to shorten your list of debts in the shortest amount of time. Choose whichever card you like, but you have to remain consistent.
Step 4: Move to the next account as soon as you pay off the first one. Once you’ve got some momentum going towards paying off your credit cards, be sure to keep going. Take all of the money that you were paying to your old account and send it to the next account on your list. When the next account is paid off, move to the next one. At this rate, you’ll be getting out of credit card debt in no time!
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I would add to step 2. I understand some money is better than no money, but the high interest rates and lack of paying of debt will never help you get out of debt if that’s all you pay. Set up a plan to pay as much money as possible to the credit card debt so you can still survive. That should be goal number 1.