Hot to Eliminate Credit Card Debt and Live Free

The numbers certainly don't lie. The typical American household has 6-10 credit cards with a total balance of nearly $10,000. We can argue about the reasons why we are a nation saddled with an overwhelming amount of credit card debt, but it really doesn't matter. What does matter is what can you do to eliminate this financial burden? Here are some simple tips to help you regain control of your life.

1. The very first step you must take is to stop charging with credit cards. You have to break the cycle of buying merchandise with money you haven't made. To believe that you can continue increasing your credit card balances and also get out of debt is false expectations to say the least. Your first step; put away the plastic.

2. Put yourself on a budget. Yes, this will take you an evening to put together, but you need to do it. Unlike our government, we have to live within our means. A budget is going to hold you responsible for your spending. You won't believe how much money is wasted when you don't hold yourself accountable. Although it will be difficult for the first couple of months to get used to, you'll be amazed at how quickly your finances improve.

3. Pay with cash. When you hand over a $100 bill to the clerk, it hurts a little doesn't it? You stop and really consider whether you want to buy that item. But, when people use a credit card, they rarely think twice about it. Why? Because it doesn't have the same value in your mind. It's a piece of plastic. Even though it has the same financial ramifications, it's not the same in your mind. It's why people will spend 112% more with credit cards than they do with cash. There is no better way to control impulse spending than by using cash only. Try it and you'll see exactly what I mean.

4. If your credit history is still in good condition, try getting a new low interest credit card. A card with a 9.9% APR is much better than 21.9% APR. The lower finance charges add up fast. If your credit is in decent shape, give this a try.

5. Once you've established a budget and have gotten into a good routine, start paying down some of your credit card balances. Begin by paying more on the accounts that have the highest interest rates.