How do I eliminate credit card debt? – This is a question that many people around the world are asking. These people have fallen into the mouth of the “credit card debt” monster in one way or another (mainly due to uncontrolled spending). So, what are the ways to eliminate credit card debt?
If you want to eliminate credit card debt, you have already reached 50% of your goal, because your decision to eliminate credit card debt is the first and most important step you can take to be able to eliminate credit debt. Having said that, it is important to mention that you also need to be firm in this decision and stick to it with complete sincerity and seriousness until you finally eliminate your credit card debt (and even after that).
To eliminate credit card debt, you need a plan. This starts with an analysis of your debt and the current state of your finances (current and near-term expectations). So, in order to eliminate credit card debt, you need to first examine the amount you owe on various credit cards. Simply use a notebook to write down the amount you owe on each credit card and the corresponding APR associated with it. Once you have this information, you can add up the various amounts to get your total credit card debt. After all, if you don’t know exactly how much credit card debt you have, you can’t eliminate it. The next step is to see if you have enough cash, for example in your various bank accounts, that you can use to eliminate your credit card debt (of course, you need to take into account how much cash you need for your specific daily and future needs). If you find that you have enough money to completely eliminate your credit card debt, go ahead and eliminate it and earn your peace of mind. However, if you can’t eliminate credit card debt completely, check the amount you can use to partially eliminate credit card debt. The next step, as you must have guessed, is to check how you can best use this amount to eliminate credit card debt (even partially), i.e. which part of the credit card debt you should eliminate first. So, first eliminate the debt on the credit card with the highest APR that is hitting you the hardest. Then eliminate the debt on the credit card with the next highest APR, and so on. If you incur additional late fees, etc., on some of your credit cards, you may decide to keep some amounts to pay the minimum payments on those credit cards (before you finally eliminate the debt on those credit cards).
What we have seen is just some basic analysis and initial steps on how to eliminate credit card debt. There are other steps you may need to take to eliminate credit card debt, for example, consolidating credit card debt is a good option. However, it is important to understand that any and all methods of eliminating credit card debt will fail if you do not instill controlled spending habits.