How to Avoid & Eliminate Credit Card Debt

Avoiding and eliminating credit card debt is essential to achieving financial success. Carrying credit card debt comes with a hefty price, known as interest. By avoiding credit debt in the first place, you can rest assured your money remains in your hands. If you have already accumulated credit card debt, by eliminating it you can be back to keeping your hard earned dollars in your wallet.

Instructions

1

Keep a fixed amount of cash on hand each week for expenses. If you cannot pay cash for something, do not buy it. If it is something you feel you really need or want, jot it down on a piece of paper and keep that paper in your wallet. If a week later you still find yourself wanting it just as badly as you had when you first saw it, consider purchasing it, but only if you can pay cash for it.

2

Use your credit card like a debit card. This is a great way to use your credit card for credit building purposes, but keeps you from carrying a credit card balance. The process involves using your credit card for some purchases, such as gas or groceries, but subtracting that amount from your checkbook. This keeps you from spending that money on other things and will ensure you can pay the bill off in full when it arrives. When the bill comes in at the end of month, you can pay it off in full because the amount will be in the bank.

3

Make weekly payments on credit card debt. This can often be done online, and will help you pay off your debt a little faster. If you wait until the bill comes in, it may seem you cannot pay $200 at one time. However, $50 a week seems more manageable and you can be sure it will be paid. If you can, sell unwanted items around the house and put that money toward your debt. Keep a ledger of your debt and watch the balances decline. This will help motivate you to continue.

4

Consider picking up a second job and putting 100 percent of that income toward your credit card debt. Do this in addition to your regular payment you make each month. If you are leery of taking on a second job for only a limited time, visit a temporary job agency to find temp work. It typically offers all shifts and has positions for both part-timers and full-timers.

5

Call your credit card company and ask for a discount if you pay in full. It may only do this if you can prove a hardship in your financial state. You can also ask for a lower interest rate and explain you are having a hard time paying off the balance. It will often work with you to ensure it collects something on the debt rather than risk losing it to bankruptcy or collections.