Learn How to Get Out of Credit Card Debt

May 16, 2012 by  Filed under: Debt 

Getting out of credit card debt is the best way of enjoying financial freedom, especially if you are under mountainous debt. No doubt, your credit card company enticed you into making a credit card with tempting offers. However, what you do not realize is that all those promotions are nothing but gimmicks. So, if you really want to get out of this debt, then you should consider the following tips.

1. List out all of your credit cards

You will have to make a list of your cards if you want to succeed at getting out of credit card debt. Make sure you start with your smallest debt and proceed in ascending order. Do not forget to take note of the minimum payment you have to make. Your minimum payments will automatically go down as your balance goes down and this will result in a quick increase in your payoff time.

2. Do not use your cards no matter what

You should avoid using your cards at all costs if you want to get out of your debt. Simply avoid buying anything that you cannot pay cash for. You will never be able to eliminate your debts unless you stop charging your cards. You can manage to stop using your cards with a bit of self-control. You can always store your cards out of your reach or simply cut them up.

3. Build a plan to repay your debt

Creating your own repayment plan will also allow you to get out of credit card debt effectively. If you want to successfully build and follow a plan to repay your debts, you will need a little commitment and discipline. You will have to focus on assessing your debts, designing a budget, keeping your monthly expenses and your debts in mind as a part of your plan to repay your debts.

4. Opt for debt consolidation

You should think about borrowing a debt consolidation loan, which will be large enough for you to pay off all or most of your debts at the same time. You will save money by consolidating your debt this way because the loans come with lower interest rates. However, do not forget you will have to provide collateral against this loan. You should definitely consider debt consolidation if you have incurred a substantial amount of debt, or you are thinking about declaring bankruptcy.

5. Negotiate and settle your debt

Debt settlement is another option that is worth considering if your earnings are not enough to pay off your debts. To negotiate a settlement you will have to inform your credit-card issuer that you cannot pay off your minimum payments. Most probably your credit-card issuer will willingly agree to a negotiation or settlement in hopes of receiving some payment.

As long as you plan appropriately, you can always eliminate your debt no matter how large it is. So, you should consider following the mentioned strategies if you want to get out of credit card debt.

Article Source:
http://EzineArticles.com/?expert=Saad_Naveed_Bari

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