If you are one of millions of people who have managed to maximize the limit on their credit card and are now living the nightmare of wondering how you can eliminate your credit card debt, worry no more. By simply following our 5-point credit card debt elimination plan, you’ll be able to take back control over your financial well-being and eliminate that nasty credit card debt:
List all of your current credit cards, the amount outstanding on each of them, the interest rate accruing to each of them, the annual fees (if any) payable on them, and the minimum repayment you have to make on each of them.
List, but this time in table format, the same details in a list that has the credit card with the highest rate of interest at the top, and the credit card with the lowest rate of interest at the bottom. Then put the minimum payment you need to make against each of these in a third column. So, when looking at the table you should have the name of the credit card in column one, the interest rate charged on each card in column two, and the minimum repayment amount in column three.
Add up all the amounts you have in the minimum payment column (column three) of the table you made in Step 2.
Calculate how much money you earn each month. Deduct the sum of: (i) your rent/mortgage payment; (ii) your average home bills (e.g. electricity, water and phone); (iii) your food and transport costs. Once you have done this, you should have a net sum remaining. Work out how much of this you can reasonably afford to use to repay the credit card debt in your table. Where possible, try to allocate as much money as possible BUT NOT at the cost of you having to use one of the credit cards during the month to see yourself over to the next pay-day.
Make the minimum payments to each of your credit cards listed in the table. With the extra money you have from your cost of living calculation, arrange to pay the credit card at the top of your list.
Once you have completed the steps in 1 to 5 enough times to make sure you have repaid the debt on the credit card that is at the top of your list, wipe this one off and move the credit card that was second on your list to the top of your list. Continue to repeat this step program until such time as there are no longer any credit card debts listed in your table.
You’ve now successfully managed to eliminate your credit card debt. Note, however, that the above credit card debt elimination plan only works if you do not rely on using your credit cards again. On the other hand, if you continue to use your credit cards, the credit card debt elimination plan above still works, but the process will take much longer to come to a successful conclusion.
And finally, “good luck” with saying goodbye to your nasty credit card debt!