Get out of Credit Card Debt for Good (cont.)
Contributed by Stephanie Litaker
Devising your plan to get out of credit card debt
Now that you're starting to see the light at the end of the credit card debt tunnel, it's time to make a plan to get out of debt. You'll need to start by cutting up those credit cards. That may sound like the oldest cliche in the book, but it's really the best place to start. If your weak heart can't take the pain of actually cutting the cards in half, you should at least take them out of your wallet and leave them in a safe place at home. If you don't have them, you can't use them.
Allocating repayment of your credit card debt
Next, look at the balances on each of your credit cards, and track your payments as well. If you have three credit cards, you should begin by paying off the card with the lowest balance first. So let's say that you have three cards. Card number one has a balance of $1,500, card number two has a balance of $2,500, and card number three has a balance of $3,000. Each month you pay a total of $500 toward your credit card bills, allocated in whatever way you want.
After you pay off card number one, rather than lowering the amount you send to the credit card companies each month, just redistribute that money between the remaining two credit cards. So if you were sending $175 to card company number one, take that money and send it to card company number two. Before you know it, both cards one and two will be paid off, and you'll be able to devote the entire $500 to card number three.
