So many people are completely drowning in credit card debt that you wonder if they even know what's going on. We do have a lot of credit card debt, though. Every day, stores and credit card companies send us offers for new cards. Do a lot of people treat their credit cards like they won the lottery or found a treasure they can spend however they want?
Well, most people have too much credit card debt and need to find ways to get rid of it, whether they know it or not. First, stop putting more money on your credit cards. Anyone who is too tempted to use plastic to buy things should put those cards away (or even cut them all up except for one for emergencies) and start paying cash for everything they need. The interest you pay on your credit card debt is already adding to the amount you owe, so there's no need to add more. You should train yourself to save up for purchases, only buy things with cash, or not buy anything at all. Once you've paid off your debt, you'll want to keep it that way. This new habit will make you think more carefully about what you buy and only buy what you need. You should make it a rule that you never use more than 70% of your credit lines at once. Even better would be to get your balances even lower and keep them that way.
You might want to think about consolidating your debts. Under debt consolidation, you move all of your credit card debts to one card with a lower interest rate. But it's important to only use this new line of credit to pay off the old ones. It won't help you buy things if you use it as a new way to get money. When looking for a loan to pay off multiple debts, compare the interest rates and read the fine print. If the balance transfer fee is high, you may end up paying more. Also, the lower rate may only last for a short time, and if you don't pay off your balance in that time, you may end up paying more. You might want to ask your current credit card companies if they can match offers from new companies. They might want to keep you as a customer if they know you can get a better deal somewhere else.
Try to pay more and more on your credit card debt each month. This will lower your balance and save you money because the interest will be calculated on a lower balance. Start by paying off the credit cards with the highest interest rates. This will help you the most.
Above all, don't get a new credit card just because your old one is full. Even if you find a credit card company that is dumb enough to give you more credit, you are just asking for trouble. Don't only use your newfound self-control with credit cards. Don't take out any other loans, like personal or car loans, either. Switching from one kind of torture to another doesn't make sense.
Over time, you'll learn how much you can live without, and you'll enjoy the peace of mind that comes with having no credit card debt and a good credit record.
