Debt Freedom – How To Get Out Of Credit Card Debt

Getting out of credit card debt is not that difficult. However, staying out of it is very difficult. So how can you get out of credit card debt and keep out of it forever?

There are several reasons why credit card debt keeps on reoccurring. Firstly, on the practical level, credit cards come with low monthly minimum payments, usually in the 2% of the principal per month. Secondly, the credit cards have very high interest rates, so this combination of low minimum payments and high interest rates help to escalate debt very quickly.

Another factor is denial. If you are thinking about how to get out of credit card debt, do remember, that denial is a big part of the problem. Denial comes about because of societal influences, which tell us to spend money. All those ads on TV selling us stuff that we usually don’t need, and often do not want, never suggest that getting into debt is a bad thing. Even in our banks and in our shopping malls, the call to get into debt is everywhere and there is absolutely no criticism of it by anyone.

If you are seriously wondering how to get out of credit card debt, and you want to keep out of it, then the most vital step that you can take is to avoid loans and credit card expenditure. So paying for your groceries with your credit cards is a bad idea. The only sane way to use credit cards for everyday purchases is if you pay the card back within the 50 to 60 day turn around period, otherwise you, even if you have already cleared your debts, the debt mountain will begin to build up all over again.

What follows are some good tactics which will help you. However, do remember the points noted above, that it’s not just tactics which are necessary to free you from credit card debt, but rather your financial attitude has to change as well.

Tips to Help You learn How to Get Out of Credit Card Debt

A. Avoid using your credit card
In order to eradicate your credit card debt it is a must that you stop using your credit card, at least until you repay the debt. Also, in learning how to get out of credit card debt and stay out, then it is vitally important to restrain yourself from using your credit card, even after you have cleared these debts. So using your credit card for everyday items such as gas and groceries is a bad precedent which can easily result in a regression back into credit card debt. So avoid credit card usage, except for really necessary purchases.

B. Work out a budget and live within it
Strange though it may seem, a great many people do not know what their monthly expenditure is. If you are seriously interested in getting out of credit card debt, then it is vital that you work out how much monthly cash flow is required to make ends meet. Then attempt to get rid of excess expenditure and use some of the money which you have saved to settle your debt. Also because you are budgeting you will have some extra cash to hand. So there will be less of a temptation to fall back onto the credit card.

C. Either snowball your credit cards or get going with a credit card debt reduction plan
If your credit card debts are not too serious use budgeting. The best budgeting technique is to simply snowball your credit card debts. This requires that you pay off minimum payments on all but one of your credit cards. With one credit card, you pay considerably more than the minimum payments so this card can be paid off quickly. Once this credit card is paid off then you use the money, which used to go to this card, and you pay it into the next credit card and so on with all of your cards.

This strategy works well for fairly small debts. However, if you want to know how to get out of credit card debt, and your debts are quite big, then seriously consider signing up to a debt relief program, such as credit card debt consolidation or credit card debt settlement programs.

D. Whatever you do is an action taker
Please understand that you have gotten yourself into this debt problem because of bad financial decisions, as well as some degree of financial denial. So part of your plan to get out of debt should include taking action on those bad habits.

To sum up, the situation for any credit card debtor, who is thinking about how to get out of credit card debt, and who wants to keep out of it, it is necessary face up to your financial reality. I know it is a difficult reality to face. But it’s got to be done. To get out of credit card debt, and stay out of it, can only be achieved by doing research and creating a plan, and then taking assertive action with this plan.

Finally, once you have cleared your debts, it is necessary to be forever vigilant regarding your budget and your credit card expenditure; otherwise your debts will start spiraling out of control, all over again.