While having credit is great, it is a resource that must be managed responsibly. For people who are finding it harder to pay even the minimum balances every month, the time has come to make some changes. Doing so will make it possible to Eliminate Credit Card Debt and once again enjoy a measure of financial freedom.
Stop Using the Cards Now
While it is difficult to kick the habit, the use of all credit cards must cease immediately. There is no way for the balances to decrease if the debtor is making more charges immediately after sending in a payment. If necessary, cut up all but one of the cards, or at least stash them away so they cannot be used for impulse buying.
With that one remaining credit card, set grounds rules for its use. No longer will it be used to pay for pizza delivery or some other minor purchase. It will be okay to use it for things like repairs to the family car or to make the co-pays on doctor visits or prescriptions. Even then, those charges must be paid off before the next statement date rolls around.
Rework the Household Budget
Most purchases will now be on a cash basis. That means drafting a workable budget and sticking to it. When the money set aside for eating out is exhausted, that means all meals are prepared at home until the new month begins. While that will mean getting creative with what is left in the pantry, it also means being able to retire those credit card balances sooner rather than later.
Develop a System for Paying Off the Cards
Choose the card with the lowest outstanding balance and focus on paying it off first. Make a little more than minimum payments on the rest of the cards in the interim. When that card is paid in full, move on to the card with the next lowest balance and repeat the pattern. Over the course of a year, several cards will have zero balances and the remainder will at least carry lower balances.
No one ever said that seeking to Eliminate Credit Card Debt would be easy. It is, however, doable. Come up with a plan today, stick with it, and in a year things will look very different.
