Not Made Of Money

Credit card debt is at the heart of many families’ financial problems. Having to make credit card payments every month can easily strangle a family’s budget. First, you have to send a huge part of your paycheck to your credit card companies in order to make your minimum payments. Then, since you don’t have most of your paycheck anymore, you find yourself using your credit card to pay for your regular expenses. So, your credit card debt continues to grow. What a vicious cycle!

The only way to break free from the cycle is to make a plan to get rid of your credit card debt forever. Your plan doesn’t have to be complicated; in fact the simpler the plan is, the better the plan will work. Write your plan down on paper and pin it up somewhere you will see it every day. Although you may need to tweak a plan to find out what works for you, I’ve listed the plan we used below to get you started.

Step 1 is to cut up your credit cards!

You have to stop using your credit cards if you ever want to pay them off. The first month will be hard, but once you make it through you’ll have broken the send a payment/charge more cycle. Don’t kid yourself into believing that you can keep your cards and just stop using them. Get rid of them.

Step 2: Create a written budget.

A written budget will help you prioritize your spending and make better choices. The process will also help you determine exactly how much money you have available to pay down your debt. Be vicious while you write your budget and slash as many expenses as you can. You’ll get out of debt faster.

Step 3: Make a list of all of your credit card debts.

There’s just something about seeing everything on paper. Then, as you pay off your credit cards, be sure to cross them off your list. The simple act of striking items from your list will be so exhilarating that you’ll rush to pay off the next one.

Step 4: Start making payments on your credit card.

Send the minimum monthly payments to all of your credit card accounts. Choose one account, though, to focus on. To that account, you should send as much money as possible. Send everything you have left of your debt retirement budget (see Step 2) after making the minimum payments, as well as any other money you can find. If you sell something, send that money to your credit card account. If you get an income tax return, send that to them. As soon as you pay off that first account, you’ll be ready to move on to the next account.

Is it possible to pay off credit card debt. You just need to develop a plan and then stick to it.

• Become Debt Free - How to Get Started with Your Debt Free Goal
• Paying Off Credit Card Debt

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