Pay Off Credit Card Debt In 6 Easy Steps

In order to get ahead financially, you will have to pay off your credit card debt before you can do anything else. The reason for this is that because credit card debt puts a stranglehold on your finances if your debts are not paid off quickly. With tremendously large interest rates, just getting by with a minimum payment can keep you in debt for most of your lifetime. Set up a secure financial future, begin saving, and begin living a worry free life by paying off your credit card debt.

1. List all your credit cards.

Studies have shown that the average family has at least two credit cards, while over 30% have up to eight credit cards with thousands of dollars on each one. The first step is to list all your credit cards according to highest interest rate to lowest.

2. Pay with cash only.

Each purchase you make from now on has to be with cash only. Using a debit card is generally acceptable also, as you can't spend more than you have in your bank account. However, adding more debt to your credit cards will not help you pay off your credit card debt.

3. Prioritize payments for highest cards.

Using the list that you made, you should start eliminating debt card by card. Continue making the minimum payments on all your cards, but your priority should be to get rid of the one that is costing you the most. Try to make double payments, even triple payments, each month. Work extra jobs, overtime, or sell unused items in or order to get your credit cards paid off.

4. Hold celebrations after each payoff.

Motivation is a great tool when you are paying off credit card debt. Each time you pay off the next credit card on your list, hold a little celebration. Have a party, either with you family, friends, or just yourself and feel good about your accomplishment. You are one card free of credit card debt. Make it a special point to cut up the card as the big event for your celebration.

5. Change spending habits.

As you are working towards eliminating your credit card debt, you should also be working on your spending habits. Only purchase those items that you need. If there are bigger purchases that you can foresee in the future, start putting away money in a savings account in order to pay for it with cash instead of credit.

6. Pay off quick through other accounts.

If you have the money in a savings, 401k, or other retirement account then use that money to pay off credit card debt. You might be reluctant to do this because it is your retirement money, but the quicker you can eliminate the credit card debt the sooner you can begin saving even more money for your retirement.  With out any credit card debt, you can now life freer, and breathe a little easier. You will be able to establish your retirement funds very quickly with the amount of money you save by not paying credit card companies.


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