If you have a significant amount of credit card debt, you are not alone.
According to creditcards.
com, 78 percent of American households have one or more credit cards.
In 2008 the average outstanding balance for households that have credit cards was $10,679.
A year earlier, the balance was $10,637.
This seems to indicate that on average Americans with balances are not paying them off very quickly.
You can become one of the exceptions.
In many cases it is possible (and less expensive) to create a plan to eliminate your credit card debt by yourself.
Unfortunately, for many this may seem like an impossible task.
If your paycheck is completely gone after paying bills and minimum payments on credit cards balances, how in the world will you be able to catch up let alone get ahead? First, stop borrowing money.
This may be the most difficult part of eliminating debt.
Credit card companies and stores have made it very easy and convenient to borrow money.
For example, in some places, you don't even need to sign for a purchase under $25.
Simply swipe your card.
Make it more difficult for yourself.
Take your cards out of your wallet.
Put them somewhere you cannot easily get to them.
Use cash whenever possible.
Studies have shown that even people who pay off their balances every month are likely to spend more when using a credit card.
Second, ruthlessly look for sources of money to pay more than the minimum each month.
Find expenses you can eliminate.
Are there any services you pay for that you aren't using? Are there any that you can do without? If you cannot find any obvious sources of cash, start looking at your incidental expenses.
Consider postponing purchases, canceling subscriptions, skipping coffee, eating at home, clipping coupons, anything to free up additional money to pay off your debts.
Once you have stopped borrowing money, finding even a few extra dollars per month can go a long way toward eliminating your credit card debt.
Third, put that extra money toward one balance at a time.
Pay the minimum payment on all cards except for one.
Add the extra cash you found to that one minimum payment.
Once that card is paid off, take the minimum payment amount, plus the extra cash and apply both to another card on your list.
Repeat until all your balances are gone.
These three steps can be challenging to accomplish.
However, the feeling of accomplishment that comes each time an outstanding balance is paid off, and the feeling of freedom that comes from not having any credit card debt are well worth the effort.
If you are struggling, one final piece of advice: Don't feel like you have to struggle alone.
Find a group of people in your area, or online that is also working to be debt free.
The support and help they can give you will be well worth it.
What are you waiting for? Get started today!
According to creditcards.
com, 78 percent of American households have one or more credit cards.
In 2008 the average outstanding balance for households that have credit cards was $10,679.
A year earlier, the balance was $10,637.
This seems to indicate that on average Americans with balances are not paying them off very quickly.
You can become one of the exceptions.
In many cases it is possible (and less expensive) to create a plan to eliminate your credit card debt by yourself.
Unfortunately, for many this may seem like an impossible task.
If your paycheck is completely gone after paying bills and minimum payments on credit cards balances, how in the world will you be able to catch up let alone get ahead? First, stop borrowing money.
This may be the most difficult part of eliminating debt.
Credit card companies and stores have made it very easy and convenient to borrow money.
For example, in some places, you don't even need to sign for a purchase under $25.
Simply swipe your card.
Make it more difficult for yourself.
Take your cards out of your wallet.
Put them somewhere you cannot easily get to them.
Use cash whenever possible.
Studies have shown that even people who pay off their balances every month are likely to spend more when using a credit card.
Second, ruthlessly look for sources of money to pay more than the minimum each month.
Find expenses you can eliminate.
Are there any services you pay for that you aren't using? Are there any that you can do without? If you cannot find any obvious sources of cash, start looking at your incidental expenses.
Consider postponing purchases, canceling subscriptions, skipping coffee, eating at home, clipping coupons, anything to free up additional money to pay off your debts.
Once you have stopped borrowing money, finding even a few extra dollars per month can go a long way toward eliminating your credit card debt.
Third, put that extra money toward one balance at a time.
Pay the minimum payment on all cards except for one.
Add the extra cash you found to that one minimum payment.
Once that card is paid off, take the minimum payment amount, plus the extra cash and apply both to another card on your list.
Repeat until all your balances are gone.
These three steps can be challenging to accomplish.
However, the feeling of accomplishment that comes each time an outstanding balance is paid off, and the feeling of freedom that comes from not having any credit card debt are well worth the effort.
If you are struggling, one final piece of advice: Don't feel like you have to struggle alone.
Find a group of people in your area, or online that is also working to be debt free.
The support and help they can give you will be well worth it.
What are you waiting for? Get started today!
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