Steps Toward Getting Out of Credit Card Debt

The first step toward working one’s way out of credit card debt is to stop using a credit card, or credit cards.

Then we recommend:

Take all of your credit cards (consider saving one for emergencies) out of your wallet or purse and stow them away somewhere safe.
Gather together all credit card statements and figure out your Annual Percentage Rate (APR) and how much total needs to be paid off on each card.
After the monthly amount to be paid off is calculated, analyse your monthly living expenses to see how much money is left over after having paid for other necessities, such as rent or mortgage, phone, Internet, utilities, spending money, groceries, and other bills for the month.
See how much money is left over in your budget after each of the above expenses are met.
Begin making payments, as large as possible, towards the credit card with the highest interest rate with this left over money.
Pay the minimum payment on each of the cards with lower interest rates with the left over money. Once any one credit card has been paid off completely, store it somewhere safe or cancel it, and focus on the next card until its debt has also been met.
Again, keep one card on hand for emergencies, but make sure the minimum payment for this card can be met each month!

You can do it!

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Posted 5th May 2009 at 1:55 pm

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