Tips for Eliminating Credit Card Debt

Do you lie awake at night stressing about how to make payments on mountains of credit card debt? Regardless of the circumstances under which the debt was accumulated, the only way to stop the stress and eliminate the debt is to set a goal, make a detailed plan and execute the plan. Follow these suggestions from the financial experts to start your path towards financial freedom. Prepare for self-sacrifice and delayed gratification. Eliminating debt takes self-discipline. The reward is worth the effort. There’s no better time than today to get started.
Make a spreadsheet of all of your credit card accounts. Include balance and minimum payment information. List the debts in ascending order from smallest to largest. Total the balances and minimum payment requirements. Set a target date for when you would realistically like to be debt free. Divide the number of months between now and your target date. This is the sum of money that needs to be dedicated debt reduction each month. To get an even shorter term picture, divide the total sum of debt by the number of weeks between now and your target date. The only way for this plan to work is to commit to not adding any additional credit card debt during the payoff period. Commit to paying the minimum balance required on each card each month.
These funds for debt reduction can come from two places. The first step is to identify the amount of your monthly discretionary spending. Subtract your fixed expenses from your monthly take home pay and the resulting sum is the amount of discretionary spending you have each month. Multiply this sum by twelve and divide by 52 and this is the sum you have each week. Forgo the expensive designer coffee each morning, decline expensive daily lunches and bring your own instead. Take advantage of awesome online deals offered by Groupon coupons and save big bucks by ordering contacts from 1800Contacts, invite friends to dinner instead of expensive restaurants. Cancel subscriptions for online streaming. While these may well all seem like small, inconsequential changes, they will quickly add up. Earmark all of the savings to debt reduction. Pay off the credit card with the smallest balance first. This will serve as evidence that your plan is coming to fruition and continue to solidify your motivation.
The second option is to secure a part time position and dedicate all of the earnings towards debt reduction. The quickest path to debt elimination is a combination of the two. Best of luck on your journey towards achieving financial freedom. You can do it!