Using credit cards for everyday expenses has become the regular practice for many American consumers
. Unfortunately, this has resulted in overspending and incurring of excessive debt. Canceling credit card debt takes patience and discipline but it is important if you are ever going to get on top financially. Here are some great tips that can help you to eliminate card debts so you can get back on your feet financially.
Create a Budget
Budgeting helps you to become aware and take control of your finances. This is where to start in getting rid of credit card debt. Develop a good budget that can help you see where your money is going and to cut back on non-essential areas of spending. This extra money can help you to pay off debts even quicker.
Go cash
Stop adding more debt to your credit cards. Do as many of your transactions as possible in cash. Unless it is an emergency, do not charge anything to those cards. By not adding more debts you reduce the time it will take you to pay off existing debt. Try as much as you can to limit your spending to money that you have now. Resist the temptation to use cash advances from cards.
Negotiate credit card debt
It is possible to negotiate your debt by yourself. This is one of the best ways to get rid of credit card debt. You can take charge of this instead of spending money paying someone else to negotiate your debts for you. All you have to do is to validate the account, by sending a validation of debt letter and then start working with the company to find a way that you can lower interest rates or the total amount that you owe.
Pay more on cards with higher interest rates
Arrange your credit cards from those with highest to the ones with lowest interest rates. Pay more on high interest cards. That interest can really add up if you are only paying the minimum payment. You can still be paying the minimum on lower interest cards, but is worth it to start paying off those high interest cards as quickly as possible.
Cancel paid off card accounts
Cancel credit accounts that you have paid off. You can keep one or two with the best interest rates to help with your credit rating. Having too many credit card accounts is not good for your credit score.
Check out the link below Debt Information Center to get more free information on debt management and consolidation.