How to Alleviate Your Credit Card Debt

Monday, November 9, 2009

With today’s economy, there are millions of people in the United States and in many other countries who are struggling with debt. It is easy to become overwhelmed with debt, with credit cards being the major factor of debt.

Credit cards are tempting to people because they almost view credit cards as free money, until they receive the bill. Most people don’t take the high interest rates that come along with credit cards into consideration when they begin using them.

When used responsibly, credit cards are not a bad thing. However, they can make or break the credit score of individuals depending on the manor in which they are used.

When you’re in debt, it may be hard to see the light at the end of the tunnel. However, alleviating your debt is simple if you start elimination credit cards and credit card debt

so you are left with one credit card that will be used for emergencies.

In order to eliminate credit cards, one should start paying them off.

When paying off credit card debt, you should focus on paying off the credit card that contains has the smallest amount of debt. Than eliminate the cards with the highest percentage rate of interest. This is important because the interest rates increase your
debt tremendously.

The steps to eliminate credit cards are:

The most important step is to stop using your credit cards altogether, pay only in cash.
Pay as much as you can to your credit card account each month and start a system of paying off credit cards so you will be left with only one credit card.

Pay all balances due on your credit cards. Pay as much as you can. Pay off the credit cards with the smallest amount due or those with the highest interest rates first.

Once you have paid off a balance on a credit card, you should close out the account to avoid allowing yourself to get back into the same situation in the future and avoid having credit card debt.

Keep one credit card for emergencies; be sure to keep the card with the most favorable terms, such as the card with the lowest interest rate and a lower spending limit. A lower spending limit will keep you from using the card frequently, and allow you to reserve the available balance.

Start using cash instead of credit cards.

It is very easy to buy with a credit card; you do NOT feel like you are spending money when you sign for your purchases. A signature does not register in our minds as actual money but it adds up to your credit card debt.

But when you are paying for things with cash (real money), you feel like you are actually spending money (because you are!). You can count the money and see right away how much is left in your wallet. As a result, you limit yourself to what you can afford and you spend only the money you have.

If you wish never to have any credit card debt, eliminate all your credit cards and open a Debit account.

A debit card is a good alternative to credit card. Debit card is similar to cash; you can spend only the money you have in your account, thereby preventing you from getting into debt and specially credit card debt.

About the Author:

Edna Ferman is a Personal Finance expert and coach and residing in Sydney Australia. The creator of The EKG Money Method, Eliminate Debt, Keep your goals in sight and Get out of Debt. Edna has created this method, using her experience and expertise in managing her business, her business finances and her personal finances. With this knowledge and using this method herself, Edna has been advising and helping many people in enabling them to reach their financial freedom and will show you how to have a passionate love affair with your money.


  1. This is Tee following from the MBC 200! You can find me here:

  2. These are good tips. My husband and I did this, paying off the smaller balance cards first then tackling the larger ones. The key is not to use the cards again, unless you are SURE you will pay them off in full right away. That way you won't repeat the cycle of debt.

  3. That is so true... as well, one should pay off the loans and cards that have the higher interest rates.It helps to work with your banker - we have a great banker who has helped us to move money around to save a ton on interest.


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