How to Eliminate Credit Card Debt

Here is the best way I have found to eliminate credit card debt. First and foremost stop using the credit cards for any type of purchases. This sounds simple enough but a lot of people continue using the cards and wonder why they cannot get out of debt.

Next to do is make three rows and columns. In the first row you will list the name of your credit card company and the next column will be the monthly payment and the third column will be the balance. Also you want to list the smallest balances first. Notice Chase bank has the smallest balance so it is listed first. If you have 10 credit or 15 credit cards with balances list them all in this manner.

When you sit down to make your payments pay a little extra towards the Chase bank
credit card. A little extra is anything over and above your standard payment. The idea is to get the smallest balances paid off first. The reason for this is because it is much easier to get the smallest balances paid off first and once you do you mark those off your list and this gives you a feeling of accomplishment.

If you have a balance of $10,000 and you are able to pay an additional $500 towards it you don't get the same feeling of completion you would by paying off an entire smaller balance. Getting a balance paid off, even a small one keeps you motivated to move on to the next.

Now whatever payment you were paying towards the Chase account you apply that payment to the next credit card which is Bank of America. Continue in this manner until you are debt free. Any bonuses or overtime pay can also be used to apply towards these accounts.

Example:

Company payment Balance

Chase 15 200
Bank of Amer 20 500
American Exp 45 2500

Total 80 3,200

This process works and eventually you will be debt free. From that point on you only want to use the credit cards only in emergency situations. Always pay off your entire credit card balances when you receive your bill. Becoming debt free should be your ultimate goal and watch the exhilaration and excitement you feel knowing that you don't have the burden of debts breathing down your back at every turn.

Once you are debt free it puts you in control and in the driver's seat regarding your financial security.