Getting out of Credit Card Debt

July 24, 2008 · Filed Under help with debt · 5 Comments

Can I get out of credit card debt?

Yes, you can get out of credit card debt.

It’s so easy to get into credit card debt and it’s difficult to get out of credit card debt.

BUT, it isn’t impossible.

To get out of credit card debt you need determination (your mindset – that “I can” attitude) and planning (that turns to action and commitment).

Try to think of personal reasons for getting out of debt and try to see the benefits of being debt free. (No more phone calls from creditors, no more past due notices, no more late charges, no more outrageous interest, no more HOPELESSNESS)

All these reasons will empower yourself to succeed in becoming debt free. Be determined about it and don’t compromise!

The second thing that you need to get out of credit card debt is planning. If you don’t feel equipped to do the planning, ask a competent friend or seek a low-cost budgeting assistant that can help you turn your debt around. I have a friend that gives her paycheck and bills to her sister. Her sister allots my friend a weekly budget and my friend doesn’t have to think twice about her bills. Some people just get overwhelmed with all the debt and don’t do anything. DON’T DO THAT! Deal with it. You can dig your hole out of that mess!

If you are already so behind and you have creditors breathing down your neck, contact a credit counselor. That is their job and they may know some options you don’t know about. If you are making the minimum payments and feel disciplined, you can create your own payment plan for your debt, here are the first steps:

Make a list of the credit cards that you currently possess. Note the debt, minimum payment and the APR for each of them.
Call the higher interest credit cards and see if they’ll negotiate a lower interest rate for you. Maybe you can transfer the higher interest cards to a lower one.
Another option is to consolidate your credit cards with an overall lower interest credit card or loan.

Determine if the total amount of your minimum payments can be paid after your other expenses(rent or mortgage, car, insurance, utilities, gas, food, etc.). If not, make adjustments, create the dreaded budget, buckle down and tackle that debt. I’ve found an easy debt evaluation calculator and a debt consolidation calculator. This might make it a bit easier to figure out which route you need to take. Good luck and keep pressing forward!

Oh yeah, and the last bit of advice: SHRED those darn plastic credit cards. Don’t use them anymore. If you don’t have the cash to buy what you want then you can’t afford it!

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