How Do You Get Rid of Credit Card Debt?
Quick Answer
To get rid of credit card debt, the first step is to stop using your credit cards, notes Bankrate. Next, list your debts, make a budget, and create a savings plan. Look for ways to reduce monthly spending, and pay more than the minimum payments whenever possible.
Continue ReadingFull Answer
- Stop using credit cards
Stop using your credit cards for impulse purchases, and only use them in emergency situations. If you are unable to effectively control your credit card use. Cut them in half, or shred them.
- List your debts
Write down or type the name of each credit card account you owe money on. Put the debt amount next to each account as well as the interest rate and approximate monthly payment.
- Reduce your overall spending
Explore long-term ways in which you can reduce spending. Sign up for phone and Internet bundling plans, for example, or group your insurance plans. You could also cancel your cable television.
- Make a budget
Your budget should include limits on weekly and monthly spending in areas such as food, discretionary income and clothing. Get help from a budget counselor, if necessary.
- Earn additional income
Find a part-time job, or pick up extra hours at work. Put the additional money your earn toward your credit card debt.
- Pay down the debt
Create payment arrangements with creditors, and make the agreed-upon payments on time until you eliminate your credit card debt completely.
Related Questions
-
Q:
What's a Good Way to Check Your Rewards on a GM Credit Card?
A: GM credit card holders can check their accumulated rewards by logging on to their personal accounts at GMcard.com or calling the telephone number on their ... Full Answer >Filed Under: -
Q:
How Do You Get Out of Credit Card Debt?
A: Two standard strategies for paying off credit card debt include using extra cash to pay down the card with the highest interest rate immediately and paying... Full Answer >Filed Under: -
Q:
What Are the Legal Consequences of Not Paying Credit Card Debt?
A: A credit card company may sue any person who fails to pay off credit card debt. If the company wins a money judgment, it collects the amount due from the d... Full Answer >Filed Under: -
Q:
What Are Some Ways to Pay Off a Credit Card?
A: Paying the highest balance first and using the snowball method, which involves paying off the smallest balances first, are good ways to pay off credit card... Full Answer >Filed Under:
