Living with credit card debt can sometimes seem like an endless, hopeless cycle. But ignoring the problem won’t make it go away, and there are ways to get out of debt and give yourself a fresh start. Face the Problem The first step in getting out of debt is to face it head on. As frightening as it may be, it is important to gather all of your bills and add up your total outstanding debt to really get an understanding of where you stand. Once you have the big picture of just how much you owe, it’s time to regain control of your finances and tackle that debt. More than Minimum In order to start making a dent in your debt, you will need to pay more than the minimum each month. By only paying the minimum, it can take years to bring your debt down, especially if you are dealing with high interest rates. If you are wondering how exactly to come up with the extra funds to put toward your debt every month, this is where setting and sticking to a budget comes into play.
Responsible money management will ensure that you live within your means, stay out of credit card debt, and even establish savings. Make a list of all your regular monthly expenses and determine where you can make cuts. Reducing your cable and cell phone packages are a great place to start and where you’ll see the biggest savings. Cut costs on food by limiting how often you eat out each month, and look for ways to cut costs at the grocery store. Applying the funds you cut out of other expenses toward your credit cards will help reduce your debt faster. Stick to the Plan Once you start to see your balances drop and your debt is eliminated, resist the urge to start overspending again. Always stay within your budget and put the money you were paying each month toward your debt into a savings account. If you continue to use a credit card, to stay out of debt by making payments in full and on time every month, and only charge what you are able to pay off at the end of every billing cycle. Living with credit card debt can be overwhelming but through proper budgeting and money management, you can regain control and move toward financial freedom.