How To Eliminate Credit Card Debt
Many people wonder how to eliminate credit card debt. With so many Americans carrying large amounts of credit card debt, a monthly credit card payment has become a way of life. The financial freedom and saving power that comes after you eliminate credit card debt is empowering.
To complete this task you will need:
- Copies of your credit card statements
- Stop charging on your credit cards each month. In order to do this you need to create a budget and stick to your limits each month. If you do not track your spending you will never be able to get out of debt.
- List all of your credit card debts in order of the highest interest to the lowest interest rate. The list should include the total amount you owe and the interest rate. This list determines the order in which you will pay off debt.
- Find extra money to pay towards your debt each month. Try to find at least an extra $200.00 a month to eliminate your credit card debt. Cut back on the number of times you eat out as well as reduce your cable or phone package to find money.
- Pay the extra money on the first credit card on the list. The extra payments will shorten the amount of time that it takes to eliminate the credit card debt.
- Apply the extra payment to the next debt on your list after you have completely paid off the first one. Continue rolling the payments onto the next debt once you have eliminated one credit card debt. By the time you reach the last few debts you will be paying very large payments on the debt.
- Once you have eliminated credit card debt, be sure to continue to follow a budget so that you do not use your credit cards anymore.
- When you use a credit card pay off the balance in full every month.