Getting Out of Debt

Now if you are already in debt, you need to get out of it ASAP! Here are a few tips on becoming debt free.

  1. Cut up all but 1 credit card.
  2. Put your remaining credit card in a plastic bag and fill the bag with water. Put the bag in the freezer. (This will force you to really thinking about spending money while you wait for your card to defrost).
  3. Contact your credit card company(s) and ask them to reduce the annual percentage rate.
  4. See if you qualify for one of the zero rate cards that are being promoted. If you do transfer your credit card balances to the zero interest card.
  5. Pay more than the minimum payment each month. If you pay just the minimum due if could take years to pay off that dinner and cute outfit you bought.
  6. Do not charge more to the credit cards you are carrying a balance on. Only use your credit card to secure reservations or in the event of an emergency.

Debt is a tether and prevents you from being able to do what you want. The only debt that is considered “good” is mortgage debt since you can benefit from the interest payments at tax time. Once you are able to pay off your credit debt and feel that you can trust yourself with a credit card again. Make sure that you get a credit card that doesn’t have nay annual fee and one that rewards you. Then be sure that you never charge more than you can afford to pay in full each month. When the bill arrives each month pay it in full.

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Other Debt Posts:

  1. Credit, Credit Cards, Mortgages and other debt
  2. Getting Out of Debt