How to Get out of Credit Card Debt?
Credit card debt is quite burdensome. Especially when you’re the type that can’t do without spending beyond your income. Fortunately, the best way out of debt is to learn from those who’ve succeeded in getting out of it.
Before I conquered my debt, I used to suck at spending. Sometimes, I unconsciously spent my hard-earned income on trivial things that wouldn’t improve my life, career or family. However, when I started applying these seven steps you’re going to read about in this article on how to get out of debt, I was able to eliminate my debts one after the other.
This article contains all you need to conquer your debt before it inspissates (gets thicker).
Seven simple steps that aid Paying off Debt
According to Dave Ramsey, “You must gain control over your extra money or the lack of it will forever control you.” These seven steps were developed after a series of self-reflection and practice.”
Best Way to Get out of Credit Card Debt – Block All Financial Loopholes
A person in debt is like a wounded patient. The first thing any doctor would recommend is to stop the bleeding. This helps you make the best use of what’s left of your income. Moreover, you can do this by leading a cash-only lifestyle or opt-in for a lower interest rate credit card, if your credit score is in good shape.
For instance, you can set apart $200 for groceries and gas weekly. Stick to that, and if you exhaust it before the weekend, then, you’ll have to cope for the remaining part of the week. But for those with faulty credit history, do consider the PCG debt consolidation loan or a payoff plan with your credit card issuers.
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Best Way to Get out of Credit Card Debt – Visual Therapy
How we see ourselves, is one of the core determinants of our reality. A visualization therapy helps you develop a liberating view of yourself. It involves picturing your debt-free life.
A lot of people overlook this step and that’s the source of their problem. Try to imagine the feelings, quality of living and achievable goals that come with a debt-free life. The motivation that follows this procedure is quite appalling.
The Best Way Out of Credit Card Debt – Budget
Blocking the loopholes is one step ahead; having a clear view of your budget is another. This would help you attain your short term and long-term goal for your personal finances.
You can conduct a total budget check-up by tracking every dollar spent or gained. Making a thorough review of your budget is the best way to take control of your income. This would help you draft the amount you want to spend days and the things you can afford to spend it on.
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Best Way to Get out of Credit Card Debt – Jump Off the Debt Ladder
The trick is quite easy. This method involves focusing your resources on the balance of the account that charges the highest interest rates. And simultaneously make at least a minimum payments on other accounts, while clearing the ones the biggest rates.
After eliminating the highest-interest balance, apply the same method on the next biggest one. Do this over and over again till you’re debt-free.
Best Way to Get out of Credit Card Debt – Create a Debt Snowball
This snowball method is quite popular. Here, the account you pay for is determined using the size of balances. This is done by adding more money to the account with the least balance and, immediately it’s settled, move the funds to the next one up.
The snowball method makes the accomplishment of a zero balance faster.
Best Way to Get out of Credit Card Debt – Be Goal-Oriented
Having a goal in mind helps you avoid unnecessary expenses. Thereby helping you focus on clearing your debt.
This requires a lot of commitment and discipline. Do away with things that arouse you to spend beyond your income and save for your career/business goals.
Best Way to Get out of Credit Card Debt – Try Credit Counseling
There is a lot of non-profit credit counseling agency out there. If you’re having difficulty coming up with a feasible plan, turn to one.
Reviewing people’s debt payoff situation is what professional credit counselors do. They’ll help you identify repayment chances and figure out the best method for you.
You can search the net to find a nearby non-profit counseling agency in your environment.
The Best Way Out of Credit Card Debt – Final Thoughts
However, clearing your debt can be quite tasking. But with these seven steps, you can get your debt repayment eliminated within weeks/months depending on how large it is.
Share your own experience in the comment box and share this post with your loved ones.
Published January 24, 2019; Updated May 21, 2019.