If you are like most Americans, you have some credit card debt you would like to get rid of.
Chances are, your balances have been climbing by the month and your interest rates also are on the rise.
But how do you get rid of this debt once and for all? There all ways to significantly reduce your debt, by as much as 60 to 70 percent, if not erase it completely.
There are certain steps to take to become debt-free or at least on the way to that freedom.
First, the person with the problem must stop using credit cards because this will only make matters worse.
A general rule of thumb is that if you cannot afford to pay cash or use your debit card, do not make the purchase.
Budgeting can be a daunting task, but it is very important to be aware of ones spending habits.
If we have a budget, we are more aware of how much is going in and out, and can keep a better control on finances.
Credit cards almost seem like a buffer to allow us to spend more than we make, but really end up hurting us in the long run.
With each purchase comes an additional fee.
Try to use cash whenever possible.
It not only ensures you are not putting yourself in further debt, but it also prevents identity theft.
If you must have a credit card, try to obtain a lower interest rate or even a zero-percentage rate.
This will keep the additional fees in check and your overall debt will not be so high.
It might seem like a good idea to consolidate bills onto a credit card, but if the balance cannot be paid off, this just adds to the debt.
Try to get a loan from your bank or credit union instead because the rate will be better and you are less likely to put off the payments.
When the time comes that you do become debt-free, or at least eliminate your debt by half or 60 percent, keep the debt away by following the above tips.
Use the money that you would be putting on your credit card bills and treat yourself occasionally - within budget of course.