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Credit Debt Blues

Mar 12, 2008
For many people, debt is a way of life. However, it does not have to be. If you are currently swimming in credit card debt, there are a variety of different things you can do to eliminate your debt and work your way to financial freedom.

One of the first steps in eliminating your credit card debt is to quit using your cards all together. The more debt you rack up on the cards, the harder it will be to get the debt paid off. In order to overcome your debt, you must also have an accurate picture of the amount of debt you currently have. Therefore, you will want to sit down and make a complete list of all of your credit card debt.

After you have an accurate list of who you owe money to, you can then move forward. You may want to considerate debt consolidation. With debt consolidation you either obtain a personal loan, home equity loan or use a credit card with a low interest rate to consolidate all of your debt into one bill. In most instances, you will save a considerable amount of money by placing all of your debt into one loan or onto one credit card. When obtaining a home equity loan or a personal loan, you will generally receive a much lower interest rate than you are currently carrying on your credit cards.

Another viable option is to enroll with a debt management company. They can work with you and your creditors to lower your monthly payments. As well, they can help you set up a plan to reach all of your financial goals. Many companies offer classes on debt management.

If you are unable to consolidate your debt or would prefer not to work with a debt management company, there are still options. If you have several credit cards that need to be paid off, begin by paying off the smallest credit card. Continue to pay the minimum monthly payments on the other cards, while applying any extra on the card with the smallest balance. After you have completely paid off that credit card, you can then begin tackling the next smallest credit card. Be sure to apply the extra money you were paying on the first credit card, in order to reduce the debt a lot quicker.

Once you have completely paid off your debt, you need to make sure that you do not end up in a similar situation again. Therefore, it is important that you cut up the credit cards as you pay them off. Each credit card that you cut up, is a step closer to your financial freedom. You can keep one credit card for true emergencies. However, it is important that you have an accurate understanding of what a true emergency is. Should your water heater suddenly quick working and need replaced, this constitutes an emergency. However, a sale at the local mall is not even close to an emergency.

If you want to get out of debt, you must begin by changing your habits. With a few simple steps, you can easily free yourself from the financial burden of credit cards. Keep in mind how you got in this situation, so that it doesn't happen again.
About the Author
Living with debt for over 20 plus years TJ Nelson cracks the code to living debt free. Discover how not to have credit debt and avoid being a slave to your creditors!
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