Overcoming Credit Card Debt
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Debt is not hopeless, including a pile of credit card debt. It might appear to be a nightmare that you cannot awake from. It might seem like you will never pay off your credit cards. It might keep you awake at night and make you feel panicky during the day. But you can beat this. You can pay it all off.
Credit card debt reduction starts with figuring out your budget. Simply add up all the expenses you have each month in one column. In another column add up your income. Do not include your credit card payments yet.
Next, add up the minimum payments required for all of your credit card debt and add that number to your total expenses. If your income matches or exceeds the total expenses, you are in great shape. Figure out what is the most you could pay towards the smallest credit card and pay that amount. At the same time, pay the minimum due on the other credit cards.
When that credit card is paid off, start paying the most you can afford to pay each month towards the next smallest credit card debt. By paying off each card one at a time, starting with the smallest debt, you will have them all paid off in record time. At the same time, do not spend more than you have budgeted. This will not work if you continue to add to your credit card debt.
If your income is not enough to cover all your expenses and the minimum due on each credit card debt, then you will have to come up with some extra money each month. You could get a second job temporarily or sell items on eBay. Or, if you are married and one spouse is not working, they could get a job temporarily, whether at an office or at home. With a computer and an Internet connection it is possible to transcribe from home, sell a product online, or anything else the two of you can think of.
If things are really desperate you might need to reduce expenses by selling an extra vehicle, selling your home and getting a smaller one to reduce mortgage payments and utility expenses, or sell your home and rent for awhile. There are many options available. The important thing is that you reduce expenses, increase your income, or both.
If all else fails bankruptcy is a last resort. It will not be easy, but it is a possible way to achieve credit card debt reduction. Before you resort to bankruptcy, however, try to work it out. Get professional financial advice from a debt reduction counselor if you need help preparing a budget or figuring out a payment plan. They can be a great help.
During this time keep in mind that you will get out of this. Do not let it wreck your marriage or your family. Whether it takes a few months or a few years, you will succeed in getting out of debt. It just takes determination, patience, and some wise financial planning.
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