Credit card debt is a serious financial issue. Credit card debt can be as devastating to your life and your family as a drug. Debt can ruin your life and your relationships with your family and friends. Debt can cause you to lose your house, your car, and your job.
Creating debt often feels good. Serial credit card users get an emotional high from the material things debt can buy. The monthly amount you must pay on your credit card debt is only a small percentage of what you’ve actually purchased. So, it feels like you’re getting something for nothing.
But, the reality is that as your credit card balances rise, your minimum payments rise, too. On a balance of $1,000, your minimum payment would only be between $20 and $50. Keep charging until your balance reaches $10,000 and your minimum payment goes up considerably to $200 or even $500. Combine that with all your other monthly expenses and you can see how credit card debt quickly becomes unaffordable.
Can You Get Out of Debt?
If you’re in debt, I know you’d love to pay it off just as easily as you charged it, but it’s not that simple. Fortunately, it is impossible, many other people have done it.
A personal finance blogger repaid $40,000 in credit card debt over 3 years.
MSN Money columnist, MP Dunleavey and her husband paid off $30,000 in credit card debt in 5 and ½ years.
Those are just a couple of examples of people who’ve paid their way out of debt. They are certainly not the only ones. You can be one of them too.
Steps to Paying Off Credit Card Debt
I’ve read plenty of stories about people who’ve struggled to pay their way out of credit card debt. Most people use the same strategy.
They recognize they have a problem with debt. Something clicks and they realize they’re carrying too much credit card debt. Until you realize your debt is too much to handle, paying it off is hopeless. You’ll continue making minimum payments and your debt will never go down.
They find the root of the problem. If you figure out why you’ve accumulated so much debt, you can work to correct the problem to prevent more debt. Not everyone uses their credit cards to keep up with the Hiltons. Some people ran into financial emergencies. Whatever the cause of your credit card debt, find it so you can fix it.
They stop adding more debt. Imagine trying to finish a pile of laundry and everything you take something off the pile, someone adds a few more pieces. You’d never finish the laundry. That’s the way it is with debt. You have to stop creating more debt or you’ll never be done with it.
They changed their spending habits. This is one of the most important steps. Not only do you have to turning to credit cards and accumulating debt, you have to give your entire spending habit an overhaul. If you keep the same spending habits, there’s a chance you’ll wind up right back in debt.
They took drastic measures. This week, I read about someone who sold things on eBay and paid off $15,000 in credit card debt. There are so many ways to come up with the money to repay your debt. You just have to be creative and seek them out. It may be as simple as cutting back on other spending, or you may have to create income some other way.
Is There a Quick Way to Pay Off Debt?
In most situations, you won’t pay off your debt quickly. There may be some exceptions. For example, if your debt is low and you have the income to cover it. Or, if you suddenly come into a large amount of money, you may be able to pay off your debt. Otherwise, paying off your debt is a sort-of “Little Engine That Could” type of effort.
Debt Elimination and Debt Settlement Scams
In your quest to get rid of your debt, you may come across companies that promise to make it easier to pay off your debt. These companies are trouble. If you’re not careful, these debt elimination, debt settlement, and debt consolidation companies will cause you more trouble and cost you more money than they’re worth. They give you a false sense of hope, making promises they can’t keep.
These companies typically leave out vital details about their services, like the devastation to your credit score and the fact that results are not (and cannot be) guaranteed.
The one exception is consumer credit counseling, which, if you choose a reputable company, can legitimately help you pay off your credit card debt.
Resources for Paying Off Debt
You can pay off your credit card debt and if you believe you can, then you will. Remember it starts with recognizing that you have too much debt, then making the decision to get rid of your debt once and for all. Here are some resources that will help you, in your journey to debt freedom.
- 10 Ways to Avoid Credit Card Debt
- 8 Signs You Have Too Much Credit Card Debt
- How to Pay Off Credit Card Debt
- Snowball Credit Card Debt Payments
- 7 Reasons to Pay Off Your Credit Card Debt
- How to Avoid Student Credit Card Debt
- The Harsh Truth About Debt Settlement
- Facts on Consumer Credit Counseling
