How to Get Out of Credit Card Debt

In the modern world life without credit cards is hard to imagine, but if you find that your balances are increasing faster than you can repay them, you need to recognize that you have a problem. The banks and credit card companies do nothing to help with their frequent offers to increase your credit limits and low minimum monthly payments. To get out of credit card debt you will need to make a plan and then stick to it rigidly for as long as it takes.

The first part of your plan should be to prevent your debts increasing further, so stop using your cards. If necessary cut them up. If you feel that you have to keep one card for use in an emergency, keep it in a place where it is not readily available. Freeze it in a glass of water or lock it away out of sight. You will also need to stop the stream of new credit card offers that come through the mail.  Dial 1-888-5-OPTOUT to get the forms.

For your regular spending use cash. The problem with credit cards is that you do not notice what you are spending. You do not see the dollar bills disappearing from your wallet. For the few expenses where you cannot pay by cash, use a debit card.

Beware the minimum monthly payment trap. It is all too easy just to pay the minimum each month, and the credit card company will be very happy if you do so. Although it varies with the type of card and the interest rate, your balance will increase even if you do not use your card. Paying the minimum will repay your debt eventually, but you will pay lots more interest in the meantime.

Plan to reduce your credit card balances. Adopt a clear strategy to pay off your cards by concentrating your efforts on one card at a time. Look through your credit cards and make a note of the interest rate charged on each. List them in order with the highest rate card at the top. Pay as much as you can afford each month off the card that is top of your list and pay the minimum payment on the rest. When the highest rate card has been repaid, turn your attention to the next card on your list. Repeat this process until you have paid off all your cards. Cascade is one name for this system which is acknowledged as the quickest way to get out of credit card debt.

If you truly want to get out of credit card debt, follow the above suggestions and you will begin to see results. When you pay off your first card you will recognize that the system works, and that, provided you stick to the plan, you will achieve your goal.