How do I get out of credit card debt?

Answer 1

To first get out of credit card debt, you have to stop unnecessary spending. Start by cutting up all but one credit card. Only use it for dire emergencies.
Then, for an entire month, you should log everything you buy and I mean every single thing.
At the end of the month organize the spending into categories (food, gas, clothing, eating out....etc).
Then analyze what it is you bought and try to cut back. If you can even cut 10-15% of your spending that's more you can use to help pay back your debt.
Take any extra money you have and put half of it into a hard to reach savings account. I'd pick a small credit union on the other side of town with very few ATMs....don't take their ATM card and start stashing the money there. Even if it is just $30-50 per month....do it...you'll see why later.

Use the other half to make extra payments on one of your credit accounts. Keep doing that each month until that card is paid off. Then call the credit and cancel the account. (it is very important for your credit rating to be sure the account is cancelled once paid).
Then take aim at another card until it too is paid off.
Then once they are all paid off, take a look at how much you have saved up in your cash account.
Use that to treat yourself to something nice.
It's a reward you will have justly earned.
The satisfaction is so much better because it is earned money that you use to pay it off in full and not something just bought on easy, lazy credit.

Answer 2

Here is the answer I gave to a similar question recently:

Step 1. Prepare a budget. You have to be sure you are spending less than you earn.
Step 2. List all debts including amount owed, minimum payment, and interest rate.
Step 3. Pay at least the minimum on all accounts every month.
Step 4. Apply remaining funds the the highest rate debt.
Step 5. When one debt is paid off, apply that payment to the next highest rate debt.

If necessary get a second income until you can pay down debt.

Answer 3

1) Chop up the Card, 2) Get a personal Loan to clear the CC Debt (as p.Loan payments will automatically come out of your account and generally have a lower APR rate), then 3) Close your Credit card, once you've paid it off with your loan money so that you won't be able to use it again.

Answer 4

Three step solution:

1. Stop using them
2. Pay more than the minimum each month.
3. Call the credit card company and DEMAND that they reduce your limit.

Good luck, I know where you are and these steps will work. The third one takes a lot of patient but keep hassling, stay on the phone and demand to speak to the supervisor. Make sure you mentiont hat you've been a customer for years.

Answer 5

if you are from uk you could try a debt management system they will arrange all the creditors for you send them letters etc then you pay a set amount each month that is agreed by your creditors if the debt is unsecured i wouldn;t worry if you didnt pay it they would only take you to court and then you have to pay summit like £5 a week and the interest would be stopped to!
trust me my friend did this and was in £20,000 worth of debt shes nearly finished now you will have bad credit for a while but dont lose any sleep over it its not as bad as you think

Answer 6

all of the above and also, if you have good credit you can sometimes call the credit card company and ask them to lower your rates. Other wise switch it over to a different card that offers 0% transfer rates for the first 6 months and pay as much as you can each month.

Answer 7

You cut the card, Minimize entirely the expenses.

Each time you want to buy something ask yourself Three times: Do I really need that ? Can I live without it? Can I get something cheaper?

Think that you are in real danger and that only by saving up you can buy your freedom! Tht is true BTW!

I have been there. I had three CCs piled up to the sky and after each payment I was pennyless. It took me a lot of effort sacrifice and time to get rid of them but I did it. Now my CC has written on it with a permanent marker EMERGENCY! becaus I will use it only in emergency situations and I would use only affordable amounts which I can pay fast!

Best of luck cutie pie!

Answer 8

A helpful resource I have found is a book called The Total Money Makeover by Dave Ramsey. This isn't any get rich quick crap. It's more like making sacrifices and smart choices now to have a better life later. I really hope this helps.

Answer 9

1. Stop shopping
2. get your credit card bills together
3. make sure you pay your bills on time
4. start with the credit card with the smallest balance, focus on putting more money towards that balance. When it is zero...go to the next smallest,so on and so forth.
PUT YOUR CARDS AWAY OR BETTER YET GET RID OF THEM.

Answer 10

Leave your cards at home. This will reduce the temptation to get something you can't afford. Pay twice the minimum payment each month. It will take discipline to pay down the balances but you can do it.