How to Get Out of Credit Card Debt for GOOD!
One of the greatest struggles faced when paying off debt is the incurring interest. It seems like each month you put 89% of your payment toward interest and barely make a dent in the principle of the debt! Unfortunately, for those of us stuck making minimum payments, it can seem like a neverending cycle. Don’t worry – it’s not. We can teach you how to get out of credit card debt and stay out for GOOD.
Last month my wife and I made our final payment toward our credit card debt and I can tell you one thing: we will never rack that debt up again. After months and months of paying the minimum payment, we realized it would take over 5 YEARS to pay them off at that rate (and our credit card debt wasn’t even as high as most peoples’). We knew something had to give. We had to make a change.
And we did.
How did we do it? Well, that’s exactly what I’m about to tell you.
How to Get Out of Credit Card Debt for GOOD
When my wife and I first began our journey to debt freedom, we had no idea what all it would entail. Sure, we knew that it would take some hard work and a lot of time, but we didn’t realize all that went into it. You see, when you’re saddled with debt and stuck under the influences of a generation who truly believes they “deserve” to live better, it’s hard to know what truly qualifies as necessity and what doesn’t.
We spent plenty of time frustrated that we couldn’t buy fast food, order a pizza, get name-brand dish soap, or even buy produce all the time. When friends came to visit, it was a struggle to make them food that we ate every day instead of working to impress them with food we couldn’t afford. When we went out of town for work or visiting family, it was undeniably difficult to keep ourselves from purchasing sodas at the gas station or something to contribute to a family meal.
Why is it so hard for us, as a generation, to live within our means?
Society has taught us that if you attend college, get a good degree, and land a good job you will be well off. And while I agree to a certain extent, there’s also a limit that the world often omits: debt has taken over.
I will be the first to admit that I completely understand that I took out the student debt, I used a credit card, I did this to myself. I got myself into this mess and it is my responsibility as a citizen to pay back my debts and work within our society. I will not whine that I cannot afford to live the life of my dreams because I am doing well: I have a good job, I have a home that, whatever quality, provides my wife and I with shelter, I have food on my table every day, and I have a puppy who I can love on and adore. I am doing well.
The thing to note is: if you spend your money unwisely, if you are flippant with your purchases, if you do not save and take care of your money, you will never find the end to the debt that is confronting you. It’s as simple as that. You must make a plan to take down the debt regardless of your income.
Just because you make a middle-class income does not mean you should live a middle-class life.
I see so many people within my generation who are buying houses, starting families, buying the newest electronics, spending money on extras, etc. It’s awesome that they feel they are in that place and can afford those things. In fact, I’m happy to see that they are succeeding. The frustration exists when those same people complain about their debt payments (credit card or student) while ordering a pizza every Friday and going drinking on Saturday.
If you are in debt, it doesn’t matter how much money you make: it isn’t yours.
So, if you are anything like the majority of us – in debt up to your ears – you’re probably looking for some tips to get rid of it. I’m guessing you came to this site to find a fast and easy solution to your debt repayment so that you can truly start living the life you have dreamed about since you were a child. Learning how to get out of credit card debt is the first step and I’m not going to say that the whole process will be easy, but I can give you three easy tips that will most definitely help.
Make More than the Minimum Payments
I’m sure you have heard this a thousand times, but I’m going to say it again. The number one most important thing you can learn about how to get out of credit card debt is to make more than the minimum payment. Why? Because all the extra you put toward your debt gets to go straight to the principle.
When you make minimum payments, you payment is broken up in this order: All Outstanding Fees (late fees, etc.), All Outstanding Interest, Principle. Your principle comes last and I’m guessing that your interest payments are outrageous. Some people can barely cover interest with their minimum payment. If only $5 is going to your principle out of your $100 payment, it will take years for you to finally become debt free.
If you have time, check out a snowball debt calculator such as the one listed on Financial Mentor (click HERE). Add in your debts and whatever your minimum payment is. At the bottom of the checklist, add $5 and see how quickly your payments drop. Now try $10. A few dollars a month extra can make a HUGE difference on your debt repayment.
Talk to Your Debt Providers / Lenders
Whether it’s a credit card company or a bank, talk to them and discuss your options. Usually, providers will be willing to offer you suggestions as to how you can pay down your debt quickly. Sometimes, these even include lowering your interest rate, offering you a payoff amount, or simply working with you to make your payoff more manageable.
The thing to remember is that even though the companies may be frustrating, they are run by real people. They have the same innate human-ness that you do and are compassionate, empathetic creatures. Now, remember that I’m no professional and that not all people will be willing to help, but isn’t it worth a try?
This is especially true in situations that may make it difficult to pay more than the minimum payment, but in any case, it’s truly worth it to discuss your goals with your provider.
Create a Budget that You Can Stick To
Finally, don’t forget that one of the most important things you can do when learning how to get out of credit card debt is to create a budget.
There’s a few reasons. For one, if you have a budget that you can stick to based upon the income that you bring in, you’ll be less likely to take out more debt. I’m sure you’ve heard this many times, but when you are trying to pay off debt never take out more debt. You’ll never escape debt’s grasp if you do. So, stick to your budget!
Second, though, and just as important, is that if you have a budget you can stick to, you’ll be able to easily find places to cut back on expenses. When you cut back on unnecessary expenses, you can put extra money toward your debt! You’ll quickly reach debt freedom, which is the ultimate goal, right?
Need help setting up a budget? Don’t worry! I wrote a whole post about how easy it can be if you follow a couple of simple steps. Check it out by clicking HERE.
How to Get Out of Credit Card Debt for GOOD
Are you ready to learn how to get out of credit card debt for good? Are you ready to implement these three easy steps to bring you to debt freedom? It’s time! Don’t let debt hold you back any longer.
Here are the three easy steps we talked about:
- Make More than the Minimum Payments
- Talk to Your Debt Providers / Lenders
- Create a Budget You Can Stick To
What is your #1 tip for getting out of debt?
Leave your response in the comments below!
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