Fewer Cards

Your first goal in reducing your credit card debt is to avoid accumulating more debt while you work on paying the current debt off. After all, what good does it do you to pay $200 toward your credit card and then use it to make another $200 purchase. A good way to avoid using your cards is to get rid off most of them. If you have a current balance owed on the card and it isnt feasible to transfer the debt to an account with a lower interest rate, simply cut up the cards to avoid using them again. Close the credit card account as soon as you have paid it off.

Your ultimate goal will be to only have one or two credit cards for online purchases and emergencies. You will only be using it for non-emergency purchases that you know you can pay off within 30 days.

Freeze Your Assets

Most of us like to keep at least one or two credit cards around for emergencies. The problem is we end up using the cards to buy a new pair of shoes, take our spouse out to dinner or buy that new TV we really want. If you are prone to these types of impulse buys on the credit card, try freezing them.

Yes, I am serious. Take a gallon sized Ziploc bag, drop your credit card in it and fill the bag with water. Stick the bag in the freezer. Within a few hours your credit card will be encased in a block of ice, making it less convenient to just grab it and buy something. At the same time you know you can thaw it out in a few hours if you really need it.

No More Impulse Buys

How many times to you go to the store with a particular item in mind and end up buying a few extra things you didnt even know you couldnt live without? Im taking about impulse buys.

We go to the grocery store and are presented with all sorts of special deals and easy grab-and-go offers at the end of isles and at the cash register. We go to the mall to buy a white sweater and end up with a pair of earrings or new boots as well.

Storeowners have figured out exactly how to push our buying buttons and get us to purchase items on impulse that they know they couldnt sell us if we took a moment to think about it.

Before you make a purchase, take a moment and consider if you really need this now. For larger purchases sleep over it. Youll be surprised how many deals dont look quite as good anymore the next morning.

$20 Is All It Takes

Weve talked at length about how to cut down on spending and using your credit card, now its time to start paying off the debt you currently have. All it takes is $20 to get you started. Of course if you can come up with an extra $100 or even more, go for it.
At the very least I want you to come up with an extra $20 a month and add it to what you are currently paying toward paying off your credit card. Start with the card that has the highest interest rate. If you are currently paying about $100 a month toward that card, increase it to $120 until the card is paid off. Then use those $120 a month and add them to what you are currently paying toward your next card. Can you see how quickly this can add up and get you out of debt especially once you have the first card paid off? By consistently doing this you can be out of credit card debt for good in a few years.

The companies that issue credit cards know this all too well, and they market their credit cards to people who really can’t afford to use them. They sell the image of being able to buy anything you want, whenever you want, and then sit back and collect the interest on the debt for years to come.

Now, obviously the best way to stay away from credit card debt is to simply never use a credit card. They can create too much temptation for many people, making it too easy to spend money they don’t have.

As time passes, they’ll spend more and more on interest charges and if left too long, they can put themselves in dire financial straits.

Never getting a credit card is really not feasible in today’s world, however. They’re necessary if you ever want to order anything over the phone or over the internet, and they can be helpful if used properly.

The following are 3 important tips for avoiding credit card debt:

- Don’t carry your credit cards with you at all times. The temptation to spend is much easier to deal with if you can’t just reach into your pocket or purse and pull out the card.

- If you really can’t fight the temptation to overspend, put the card in a tupperware container or tin can, fill it with water and put it in the freezer. If you have to thaw your card out to use it, it will be a lot harder to spend on impulse.

- Compare credit cards when you are applying for one and look for the best terms – lowest interest rate and best payment terms.

If it’s too late to avoid credit card debt, there are a number of steps you can take to deal with it including credit counseling or a debt consolidation loan.

When you are in over your head with credit card debt, relief can seem miles away. Sometimes it seems like you are working as hard as you can to make the minimum payments or even to just barely cover the interest on your balances.If you want to get out of the cycle of credit card debt follow these 3 easy steps and you will be on your way to financial freedom.

1. Switch to a lower rate card.

If you can switch your balance from a higher rate card to a lower rate card, you can save quite a bit of money. Even a card with a 5% lower interest rate will make a difference on the amount you owe on your monthly credit card statement. Take the money you save and apply it to the balance to reduce your debt even faster.

2. Pay on the principle.

It is very easy to fall into the trap of just paying the minimum payment on your credit card statement, but if you make a practice of this, you will never get out of debt. The only way to eliminate credit card debt is to plunge in and pay it off. The more you pay on the principle the less you will be paying in interest, and you will start to see a difference in the amount of money you are being billed each month.

3. Dont add to your debt.

Make it a rule that the credit cards are only used for special or emergency purchases. Stop buying things like groceries or clothes using your credit card. Chances are if you are going to put an item on the card, you will often end up buying things you hadnt planned to buy. These impulse buys may be convenient, but they add up, and you will be paying for them long after their usefulness is gone.