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Credit cards can be both a blessing and a curse. It all depends on how you use your credit card. Misusing them can lead to serious debt while using them wisely can make life easier and better for you and your family. Unfortunately, a large number of people misuse their credit cards and end up with huge chunks of debt. Listed below are 24 ways to get rid of your credit card debt.
Take Stock
Calculate how much you owe so you will know exactly how much debt you have to pay off. You can work towards reducing your debt if you are not certain of the figure.
Improve Your Rates
Contact your creditors and negotiate for lower interest rates and payments. You may be surprised at how much you can save at the end of each year. Use the money you have saved to pay off the debt. Try to pay more than the monthly minimum amount to get out of debt fast.
Track Your Spending
Make a detailed list of your expenses and divide them into various categories. Review the list and do away with unnecessary items. Your expenses will be reduced so you will have more money that you can channel towards paying off your debts.
Create a Budget
Use the services of a credit counselor to help you work out an effective budget. Change your attitude towards spending. Do not buy something because you want it but because you really need it.
Stash Your Credit Cards
While working towards reducing your credit card debt, try not to use your cards to prevent debt from piling up. Instead, use cash to make purchases because you can help you better track where your money is flowing so you will not overspend.
Tap into Home Equity
Use home equity loans to pay off your credit card debt. Only homeowners can use this method to pay off what they owe. Ensure that you pay back the loan to prevent your home from being sold off to recover the debt.
Sell Your Clutter
Gather items that you no longer need such as furniture, old clothes and electronics. Sell them with a yard sale or through Craigslist or eBay. You will earn extra cash that you can use to pay off what you owe.
Get a Second Job
If your income is not enough to sustain you, get a part time job. If you are not earning enough, this means you cannot pay off your debts and they will continue to accumulate. Channel the extra money you earn with a second job towards paying off your bills.
Keep an Emergency Fund
Do not use your credit cards to pay for emergencies as they can be very expensive. Have an emergency fund, which should be the equivalent of 3 to 6 months of your monthly income.
Make Money from a Hobby
If you are good at doing something such as singing, use this talent to make more money. Use the money as opposed to credit cards to pay for expenses.
Do not Skip Payments
Ensure that you pay your debts on time to prevent them from accumulating. You can put a reminder on your calendar or smart phone, which will help you remember when the due date is near.
Adopt Frugal Living Habits
Living frugally helps you to reduce your expenses. You will not have serious debt problems because you are not accumulating any debt.
Cut Back on Leisure
This does not mean that you do not spoil yourself. Instead, save for the vacations and trips you wish to take.
Celebrate Small Successes
Celebrating the little achievements you make paying off your debts can motivate you to continue paying off the whole amount.
Reduce Your Bills
Make sure that you switch off electricity if it is not use. You can also do away with your satellite subscription and Internet. If you want to browse the Internet, use the library as this would be cheaper.
Prepare Meals at Home
Eating out at a restaurant is expensive so you will spend more. Cooking at home is cheaper, therefore, you get to save some money that you can use to pay off the debt.
Rent Out an Extra Room
If you have an extra room or a garage that you are not using, you could rent it out to earn more money.
Move to a Less Expensive Apartment
If you are living in a rented house, move to a cheaper house to save money. You can get your children to share a bedroom which is very economical.
Fight Discouragement
There are times when you are in low spirits and you lack the strength to continue. Work harder and you will see that your actions will finally pay off.
Reduce Your Withholding Tax
Reducing your withholding tax can help you have more money on your paycheck, which will help you to pay off bills.
Make Crafts and Sell Them
There are craft items which are easy to make such as gift cards, sell them to get more cash.
Start a Debt Blog
A blogging site will enable you to make more money especially from advertisements.
Use a Calculator While Shopping
A calculator will prevent you from overspending because you deduct every purchase you make.
Debt Settlement
Negotiate with your creditors. If they accept your offer, pay a lump sum and you will be debt free. Debt settlement is without a doubt the best method of getting out of debt because you will end up paying a small percentage of what you actually owed and the rest will be written off. With this option, you can be debt free in less than 48 months.
