What is the best way to get out from credit card debt?

Answer 1

pay the card off

Another AnswerLearn to live poor. I know that it sound rather strange, but being poor is learning to do without credit. While you do need credit in order to keep your score up, there are many ways to keep it to a minimum.

You should have no more than three cards. The days of juggling credit are long over, and it's time to manage effectively. Cut up the rest and close the accounts. These cards with the highest interest are obviously the ones you want to get rid of, so close the accounts and forget they exist.

Now...take the three that you have and find a soup bowl for each one. Put the card in the bowl, run water over it...and freeze it. Yes, that"s right, freeze the card in ice. And keep them in the freezer! When you do not have the card to turn to in everyday situations, you will not be tempted to make that "I can't live without that gorgeous purple pair of shoes" purchase. The card is still there, you can still access it, but it take time to thaw. In the time it takes to thaw, you will (hopefully) come to your senses and make yourself richer by not having something in your closet that you won't wear.

We have taken the basic steps for learning to live poor. The next thing is to pay off the highest interest cards fastest. This means that if you have balances on all your cards, find the one with 22% interest and pay that sucker off! Look at the bottom of the statement..you will be shocked to learn that, in terms of cash, you are probably paying the equivalent of your entire grocery budget to the credit card company in interest!!! Pay as much as you can on this card until it is paid off...then cut the card. As much as it hurts, pay minimums on the others in order to get the big one paid off. Repeat this process until you have them all paid off.

If your health and age will allow, take a second job this year to have the money to do this. The second job is strictly for the purpose of getting the income to pay off debt. Use the entire paycheck for this purpose.

From here out, pay cash. If you don't have the money for a purchase, you don't need it! Pure and simple, you can't afford squat right now! Make your lunch, carry a thermos, cook at home. That ten dollars for lunch translates out to $300 a month...money you can use on your debt. A sandwich from home with chips costs about two dollars...big difference. Learn to look at every purchase from the perspective of "if I lose my job tomorrow, could I afford this?" The answer is probably "no", so that's money you can use to pay down your debt.

Forget going out for entertainment. Chances are, you have an entertainment center at home. The grocery store has DVD rental for a dollar. They also have popcorn and soda for ridiculously small prices. A "movie night" at home will cost less than $10 compared to $50 at the cinema. Big difference..and that $40 difference will go on your debt

Learn to look for ways to pare your budget. Learning to cook is a great incentive to paring your waist line, your debt, and your life style. Cut your own nails, wash your own clothes, learn to operate an iron! The laundry bill will be cut in half or more, your food budget will be slashed, and the salon bill will become non existent. Do you really need someone else to paint your finger nails? Can't you learn to blow dry your own hair? Or grow it out? I know that braids are popular this year.

When you decide that debt is NOT a way of life, you can free yourself from a great deal of debt. Yes the rent or mortgage must be paid, the groceries must be bought, and the utilities must be paid. You have to have gas for the car, and the children must have clothes.

Clothes are coverings for the body, not wealth statements. Shop for clothing at the thrift shops. Other people are not intelligent enough to do this...and the clothing is frequently good quality. You can find designer labels there at slashed prices. Your kids won't know if you present it to them! "New" is a relative term..and a "new" item that is from a thrift shop looks just as nice without price tags from an upscale department store.

Learn how to live poor, baby!