If you've got overwhelming financial problems staring you in the face there is a good chance that credit card debt is the primary reason. Are they nearly maxed out with outrageous interest rates and minimum payments that barely pay the balance down? Do you get the dreaded late fee that negates the payment you did send? If this is you then you are no different from millions of other people who are dealing with the financial burden of high credit card balances everyday. |
Credit cards are the leading cause of financial hardship for most people and finding a solution for this type of debt is a high priority for those affected. Getting out of the credit card trap can be difficult because every bank and store sends out credit applications offering more and more credit with higher limits. It turns into a never ending cycle that encourages consumers to spend more then they make.
So what are the best credit card debt solutions you can use to get out of this cycle of debt?
The first solution to getting out of control credit card debt is simple; destroy the evil things. Burn them, shred them, or flush them down the toilet. You can't keep using them if they don't exist. This is an immediate way to take back control of your money because when you use a credit card you are using someone else's money. They in turn are making money through the interest rate they charge you for the use of their money. And that is the problem with borrowing money; in the long run it ends up costing you your future because you are always working to pay it back.
Once you have gotten rid of those credit cards and the temptation they offer it is time to get serious about paying off that debt. Some basic accounting comes in handy here. Get a pencil, a piece of paper, and all your past months statements. In a column write down the credit card name or bank issuing the card and then in subsequent columns write down the balance owed, the monthly minimum payment, the interest rate, and the interest being paid. Add each of those columns up and write down the total at the bottom.
Look at those totals closely. This is money that could easily stay in your control if that debt did not exist. Think about what you could do with that money if it wasn't going out the door every month. If it makes you mad so much the better because getting out of credit card debt is about attacking the problem head on.
Now you need a plan. The credit card debt solution that works best for most people is to list them in order from lowest balance to highest balance. While paying the minimum payments on all your other accounts attack the card with the lowest balance by sending any extra money you can afford out of your budget or scrape together to that credit card. The reason to doing it this way is simple; you'll be able to knock that one out in relatively short order and that will keep you motivated to jump to the next lowest and rolling the payment from your first card into the second. Just keep rolling down your list with the same determination and when you reach the card with the highest balance your momentum will roll right through it.
The best solution for dealing with credit card debt is to not use them. It is to easy to fall into the bad habit of using them to purchase those things you think you need. By avoiding that trap you can build a sound financial future that will allow you to live the kind of life you always wanted without resorting to their use. Make a life changing decision and take back control of your money from the credit card companies today.
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