Out of Credit Card Debt in 3 Simple Steps

[ Bookmark this page! ] [ get HTML Version ]

Consolidate debt and rebuild credit - Debt help online
By consolidating your debt you can rebuild your credit by making on time payments, paying off your debts, and increasing your cash reserves. Depending on your debt load, you can improve your credit situation within two years, enabling to qualify for better loan terms. Consolidating Debts The idea behind consolidating debts into one monthly payment is that your rates and payme... Read debt consolidation article



Get out of debt today before the debt snowball effect begins
The main reason for getting out of debt today, is because people with little or not debt have more control over their future:

1. They have more discretionary income, meaning that you won't be living pay check after pay check as you probably are right now. Can you even imagine how nice it is to be able to go to the Spa or for a nice dinner without having to put it in the credit card, but... Read debt consolidation article



Out of Credit Card Debt in 3 Simple Steps
No doubt, if you're here, you've probably made some mistakes financially. That's okay, there's no adult walking the earth that hasn't. You can certainly be sure of that.

I truly enjoy helping people get their finances under control. It really does bring me a lot of satisfaction. One thing I do to make sure I stay abreast of new financail crises is to watch message boards. Many times people will join a message board and post something along these lines:

I really need someone's help. My spouse and I have made some mistakes financially and now we're really in a bind. We're barely making ends meet. I've even taken on a part-time job. It just seems there isn't enough money at the end of the month. No matter how hard we try, it seems there's always something that comes up that keeps us from saving anything! Please, help us get out of credit card debt. We're drowning!

Small details in these situations change, but the answer is almost always the same. If you find yourself in a similar situation, think long and hard about what you are about to read, then commit yourself to doing it.

Three steps to help you get out of credit card debt:
1: Cut up your credit cards and close your accounts. I don't care about your FICO. I don't care about emergencies. You need to stop borrowing money. You can't dig yourself out of a hole - you need to climb out. Cut up your credit cards and close your accounts. This step might take a lot of faith on your part. It maybe sent an uneasy feeling to the bottom of your stomach. That's okay though - that's just because you have gotten so used to that comforting plastic that you're going through a bit of withdrawal. Take a deep breath and destroy your credit cards.

2: Get on a written budget. What does this mean? You write down everything you spend and you sit down at the beginning of the month and budget your money. Experience (mine and thousands of others) has shown that when you begin budgeting your money by having a plan and sticking to that plan, you experience a raise. And usually it isn't the 3-4% raise you're used to. We're talking 10-20% - even 30% at times. When you plan and budget your money you are not constricting yourself, you are telling your money what you want it to do. Once you do that, get out of its way and let it do what you told it to! Once you're on a written budget you'll see where you can easily cut back on unnecessary expenses while not even experiencing a change in your lifestyle (which wouldn't be the end of your world, if you're having credit card debt issues). Once you have a budget in place, you'll see where the extra money can come from - enter step three.

3: Snowball your debt. This final step will be the final blow to your credit cards. Do you want to know what will really help you get out of credit card debt? Big, fat payments on the principal that you owe the credit card companies. That's right, you will not be shifting the debt around, pretending to actually be doing something. You will be paying down your credit card debt one step at a time.

Let's do a quick recap on what will help you get out of credit card debt:
(1) Cut up your credit cards and close the accounts. Never use them again.
(2) Get on a written budget. You tell your money what to do - not the other way around.
(3) Snowball your debts into absolute oblivion.

Jesse Mecham is a personal budgeting coach, creator of a unique and powerful personal budgeting system, husband, and father.

For more of his writing, you can check out the You Need A Budget Blog.

What do you want to do?
Bookmark this page before you lose it
Search this site for FREE information
Help spread the word. E-mail this page to a friend

Complete Credit Card Debt Elimination

Wouldn't it be nice to have all of your credit card debt magically eliminated? Unfortunately, if you don't have a magic wand or a Jeanie in a bottle, you'll have to create the magic yourself. Here are some simple ways to totally eliminate your credit card debt.

Stop Charging

The first and surefire way to begin the elimination process is to stop using your cards. Cut them up, keep one or two for emergencies, and simply stop the climbing balance and interest. You may be tempted to close your accounts to curb your temptation, but some companies will penalize you for it, so it is best to wait. Once you have them paid off you can call and close the accounts.

The first step may be the hardest, but it is also the most important. You can never eliminate your credit card debt if you are continuing to add to your debt.

Assess the situation

Make a tally of all the debt you owe to credit card companies and make notes of each cards interest rate. It may help you to transfer cards with high interest rates to lower rate cards. Also, it is wise to call your creditors and ask about renegotiating a lower interest rate. You may be pleasantly surprised with their cooperation.

Pay in a logical order

If you're looking to eliminate your credit card debt, you know that you have to pay more than the minimum balance, but do you know which of your cards has the highest interest and what would help you erase your debt the quickest?

After you have called to talk with your creditors about lowering your interest rates and have taken steps to transfer any high rate cards to lower interest rate cards, make a list of your current cards interest. Take the highest interest card, no matter what the balance, and concentrate on paying it off first. Then move on to the next card on the list.

If you stop charging, lower your interest and begin paying on your highest interest card, you will eventually see your credit card debt, almost magically, disappear.

To view our list of recommended debt management and consolidation companies, visit this page: Recommended Debt Consolidation Lenders.

Carrie Reeder is the owner of ABC Loan Guide, an informational website about various types of loans.


Top rated articles for debt consolidation

1. Debt Negotiation - Avoid Bankruptcy and Get Out Of Debt Faster
Has credit card debt got you thinking about bankruptcy?

You're not the only one these days. Even with the new bankruptcy laws, credit card debt continues to climb. Unfortunately for most of... Read debt consolidation article

2. Get out of debt today before the debt snowball effect begins
The main reason for getting out of debt today, is because people with little or not debt have more control over their future:

1. They have more discretionary income, meaning that you won't ... Read debt consolidation article

3. Consolidate debt and rebuild credit - Debt help online
By consolidating your debt you can rebuild your credit by making on time payments, paying off your debts, and increasing your cash reserves. Depending on your debt load, you can improve your credit si... Read debt consolidation article

4. How business debt management can save thousands
As any business owner knows, being sued can be a stressful, time- consuming, and expensive experience. In fact, it can be absolutely devastating for a business, leading to financial ruin and even bank... Read debt consolidation article

5. Debt consolidation options - Choose yours wisely
Nobody likes being in debt or the additional stress it adds to their life. Additionally, most individuals have some form of debt that is weighing heavily on them and they simply want to get rid of it.... Read debt consolidation article

6. Steps to Get Out of Debt
Step 3 - Analyze Your Debt

The next step is to figure out exactly how much you owe. First, make a list of every debt you have. Not just credit cards, everything. Credit cards, department st... Read debt consolidation article

7. Debt - Ten ways to get out and stay out of debt
1) Use your Assets If you have assets with some significant equity, such as a home or a car you may be able to use these to get control of your debt. For example, you could get a loan on your home suf... Read debt consolidation article

8. Credit repair collection agency
Credit repair and collection agencies go hand in hand since one is out to get the other. In other words, we sometimes run from our debts taking advantage of a kind gesture. Collection agencies are not... Read debt consolidation article

9. Credit Repair - Do It Yourself
Credit repair companies approach people offering to repair one's bad credit standing for a fee. Many people are not aware that one can actually repair his own credit. Thus, unsuspecting clients fall f... Read debt consolidation article

10. Secured consolidation loan - Getting a good one
If you're looking for the best way to reduce the number of payments you have to make each month, you might want to consider a consolidation loan secured. By getting a consolidation loan sec... Read debt consolidation article

1. Student loan and debt
2. Consolidating Debt for a Stress Free Life
3. Consolidate Debt
4. Credit and debt counseling - Start by evaluating your expenses
5. Debt Consolidation Loan - Vanquish Your Debt
6. Debt settlement and income taxes - Your questions answered
7. Credit card debt - Credit problems
8. Debt tips
9. Get Out of Debt and Stay Out Of Debt
10. Debt and Bankruptcy - Credit card payments almost doubled

Debt consolidation, debt counseling and debt management in Alabama, Alaska, Arizona, Arkansas, California, Colorado, Connecticut, Delaware, Florida, Georgia, Hawaii, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, Minnesota, Mississippi,



Out of Credit Card Debt in 3 Simple Steps
Debt consolidation, debt counseling and debt management services in Missouri, Montana, Nebraska, Nevada, New Hampshire, New Jersey, New Mexico, New York, North Carolina, North Dakota, Ohio, Oklahoma, Oregon, Pennsylvania,

Debt management, debt counseling and debt consolidation in Rhode Island, South Carolina, South Dakota, Tennessee, Texas, Utah, Vermont, Virginia, Washington, Washington DC, West Virginia, Wisconsin and Wyoming.