5 Tips to Help Eliminate Credit Card Debt

5 Tips to Help Eliminate Credit Card Debt

by Max Anderson

If there's one thing almost all consumers have in common, it's the desire to eliminate credit card debt. Whether it's a few hundred dollars or a few thousand, credit card debt can really put a dent in a household budget. Here are five tips to help eliminate your credit card debt while building a healthy and solid financial future.

1. No Minimums Apply

Credit card companies have this thing that they like to call a minimum monthly payment. I call it keeping you in debt for as long as possible while they make as much money off you as they can. If you really want to eliminate credit card debt, forget that the minimum monthly payment option even exists (unless, of course, you're having a hard time even making that payment).

Don't make the mistake so many consumers make by paying only the minimum payment to each of their credit card companies when the bills come in. Instead, pay as much as you possibly can towards your credit card debt each and every month.

2. We're Not Gonna Take It!

Shrinking grace periods, increasing interest rates, hidden fees and charges -- don't put up with them! If you want to eliminate credit card debt you need to avoid incurring unnecessary expenses, and that includes the nickel and diming that some of the credit card companies try to get away with.

If you feel that your credit card company charges too many fees or too high an interest rate, switch over to a more favorable card. If you really want to eliminate credit card debt, you need the right tools to do it. That includes a credit card that works for you, not against you.

3. Sacrifice Is Necessary

Sometimes you have to sacrifice to get what you want and if you really want to eliminate credit card debt, some sacrifices are going to be involved.

You know that expensive vacation you've been wanting to take? It's going to have to wait. And those $4 lattes you've been guzzling almost every day? Gonna have to cut back to once a week. All that money needs to go towards paying off your credit card debt.

By eliminating expenses that aren't necessities (and those lattes are NOT a necessity, regardless of what you've been telling yourself) you can put extra money towards your credit card debt each and every month.

4. Kill Two Birds With One Stone

Want to kill two birds with one stone? Clear the clutter in your home while you eliminate credit card debt.

A garage sale is a great way to take a chunk out of your credit card debt. Go through your home. Anything that you haven't used in a year put in the garage and get ready for a garage sale. Some consumers have been able to knock hundreds of dollars off their credit card debt from the proceeds of a successful garage sale.

5. Put 'Em on Ice

If you really want to eliminate credit card debt, you can't be using your cards while you pay them off. If this means locking them away in the freezer, then do it.

If you pay off $200 in one month and then charge another $100, it's literally like taking two steps forward and one step back. Don't do it. Avoid using your cards at all costs until your credit card debt is eliminated.

Once your credit card debt is gone, you'll be able to save more and spend more. You can go back to planning that great vacation or indulging in the daily latte -- as long as you have the cash to do it. While it may not be easy to eliminate credit card debt, it is most definitely worth it in the long run.