Getting rid of credit card debt is a good goal for those who are working towards a debt-free life. According to USAtoday.com, however, the average American is $8,000 in debt. This means that getting credit cards paid down will require some belt-tightening as well as some serious changes in lifestyle for that to happen.
Step 1
Pay off more than the minimum. If you stick to the small required payments, it might take you years to pay off even the smallest credit card debt. Try to at least pay double the minimum payment every month. If you have many credit cards, double the payment on the card with the highest interest rate and then pay whatever you can over the minimum on all the others.
Step 2
Stop using the cards. As long as you keep charging everyday purchases to the card, your debt will keep increasing and fees will continue accumulating. Put the cards away to be used only in the case of an emergency, and start doing all your shopping with cash.
Step 3
Buy only what you can afford to pay for right now. If you don't have the cash to pay for it, learn to do without. Eliminate or reduce to the minimum any expense in nonbasic categories such as clothes, entertainment or travels and vacation.
Step 4
Commit any additional money you come up with towards paying off your cards. This includes everything from an unexpected raise or bonus to money you earn by selling things on eBay or through garage sales.
Step 5
Consider getting a loan or cashing out your savings to pay off the cards completely. If your credit cards have an interest rate of 20 percent and you can get a loan for under ten percent, you would be saving money by taking out the loan. Or you can pay off the debt using your savings and save on all the interest. Just make sure you keep enough money stashed away so that you can deal with emergencies without having to use your cards again.
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