How to Eliminate Credit Card Debt

Credit card debt is more than a hassle; it's an albatross around your neck that weights you down. You can't buy the car you really want because of the minimum payments to credit cards. The house you really love is out of reach due to credit card debt. The cycle is endless and it can feel like there is no way out. Luckily, you can get out of credit debt.

The Vicious Cycle

Credit card debt can create a vicious cycle of charging and interest payment. You need a care repair, but you don't have the funds to pay cash for the repair so you charge it. You want a new TV and can't afford to pay cash so you charge it. Before you know it, you are charging everyday items because so much of your income is consumed by credit card payments. The first step is to break this cycle by not charging anything else. This can be difficult, and you will feel more broke than ever before. But it is necessary. Here are some tips to help you stop the charging.1. Leave the cards at home. If the cards are not with you it's easier to be good.2. Put them where they're hard to get to. You don't want to cut them up in case there truly is an emergency that requires a charge purchase. One idea is to freeze them in ice so they're harder to get to.3. Figure out how much money you are paying to credit card payments. When struggling with the new lifestyle, remind yourself that you will soon have that much more money in your pocket every month.

Negotiate Lower Interest Payments

This won't always work, but it's worth making a call to find out. If you have a good payment history with the credit card company you might be able to negotiate lower rates. Call the company, remind them of how long you've been a customer and ask if there's anything they can do with your interest rates. Even a single percentage point drop can help you pay off the bill faster.

Use the Snowball Method

Choose the card with the lowest balance and the highest interest rate. Put any extra funds on that one card and pay the minimum due on the others. When that card is paid off, take the full payment you were making and apply it to the next lowest balance card. Continue rolling the payments from one card into another until they are all paid in full.

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