I totally understand why you want credit card debt elimination. It seems as if at one time all I wanted was to do was get my hands on as much credit as I could. Now that my wish has come true and I am seeing the effects of my happy times, things have got to change.

So How Do You Banish The Bills?

Let’s face it your credit card debt is not going to just disappear (sorry). You have to make a conscious decision which must be backed by appropriate action in order to reduce your credit card balance.

In this article we’ll look at various ways to do this. Eliminating your credit card debt would not be easy and, though the sacrifices to be made could seem huge, they sometimes are. Just keep your goal in mind and work with the option that is the most realistic not necessarily the most comfortable.

Step 1 – Put Your Plan in Writing

• Start by tallying up all the card debts you owe along with the interest and minimum payment or the amount you pay each month.
• Next state the date by which you want to be debt free and calculate how much you would need to pay each month to achieve this goal.
• For cards that are already maxed out, cut them up and keep only one active card. This would keep you from spending on your cards should the available limit increase.

Once you have your plan in place you’ll know how much cash you’ll need each month. What you need to do next is devise ways to earn or save cash that will be used for your credit card debt elimination.

Step 2 – Cash Saving Methods

0% Balance Transfers

You don’t really want to be paying interest on your debt right now, so where possible transfer to a 0% balance transfer credit card. The money that would have been eaten up by interest can now be used to reduce your balance. Try to transfer the balance from the card with the highest interest rate.

One at a Time

If it is proving very difficult to find extra cash each month, try paying the minimum payment on all cards except the one with the highest interest rate. Every bit of spare cash should be used to reduce that balance. Once this card is paid off, continue paying the same amount or more to the next card in line and so on, until your cards are all paid off.

You Are No Longer a Consumer

Only spend money if you have to and only on items that are absolutely necessary. If being debt free is your ultimate goal, then sacrifices like these must be made. You may have to give up your cable, fast food or occasional shopping spree but hey, who said this would be easy.

Liquidate Your Assets

I am not a big fan of this method, but sometimes you have to take drastic measures to get the results you want.

When I say liquidating your assets, this could involve the following:

• Use some of your savings to pay off your credit card
• Have a clear out and sell some of the things you no longer use (or never even opened)
• If you have a big asset that carries high maintenance fees (e.g. a car.) Try trading it in for a less expensive model. Use the extra saving to pay off some of your debt.
• Remortgage and pay off your debt. This only moves the debt from one area to another so this should be a last resort if you are serious about eliminating your debt.

Whichever option you choose to help you with your credit card debt elimination, I wish you every success.