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How To Start Paying Off Credit Card Debt

By Edited Nov 13, 2013 0 1

Interested in paying off your credit card debt and becoming debt free. Then this article is for you. I will give you 5 easy steps to gain control of your finances and achieve financial freedom.

Things You Will Need

Pen and Paper
Current Credit Card Bills
Telephone
Internet Access

Step 1

Get Organized.
The first thing you need to do when you decide to start paying off your credit card debt is to get organized. Get all your bills out (not just your credit card bills) and find out where your money is going, and why you are in this situation to begin with. If you don't already have a good budget you need to make one. After this process is started you need to stay on track. Once you get some off these cards paid down it will be easy to go and max them out again, remember, financial freedom.

Step 2

Get Motivated
Run the numbers on all these credit cards. Find out how much all this "free credit" is costing you. Most of this information is on your is on your bill, but if you are having trouble finding it call up customer service. Ask them exact questions like monthly fees or interest rates. If you are behind ask them how much their late charges and over the limit fees are. Once you do this for all of your credit card debt it will become more clear where you are wasting the most money and which ones you need to attack first.

Step 3

Make Some Calls
Once you know everything about your credit cards and your current situation, you are already ahead off 99% of people that are in debt. Call back those sneaky customer service people and "cut some deals", try and get some of those fees taken off, or a lower interest rate. This will get the ball rolling before you have even paid a penny towards those credit card bills. Also most credit card companies have programs made just for people like you who want to pay them off but just are not able to. These programs offer interest free financing for a few months or even money off your bill. Don't get discouraged if they wont budge, you are just trying to get a little jump start. You still have a way out with all of your new found knowledge and your solid budget.

Step 4

Attack Those Bills With A Vengeance.
The forth step for paying off your credit card debt is to get down and dirty and pay those bills. Get all of your bills current to where you are not getting charged those outrageous fees, then pick that one that is taking the most of your money and stomp it into the ground (but don't forget to pay at least the minimum payments on the others) . Skimp on all your luxuries, sell everything but the necessities on eBay, and dump as much money as possible into that bill, if Aunt Sandy gives you a $50 check for your birthday, pass that gift onto Visa. It much be hard to do now but just think of how nice it will feel to have all credit card debt off your chest and pay for your purchases with cold, hard cash.

Step 5

Don't Let Up!
After paying off that first credit card, smile, take a breath, and go after the next one. If you were able to pay Visa $150 a month and you just paid it off, take that $150 and add it to MasterCard's minimum payment. By the time you get to down to your last few cards you will be paying them off so fast it will make the credit card companies heads spin. Just remember these steps get easier as they progress, just stay focused and stick to that budget and you will be enjoying financial freedom in no time.
If you follow these 5 easy step you will eventually achieve financial freedom. Some cases may take longer than other but don't give up, it will work.

Tips & Warnings

Customer service is not your friends
Keep track off your money

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Comments

Apr 15, 2010 3:30pm
Sookie
credit card debt can suck the life out of you! Getting control gets your life back... great article!
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