Here's a GREAT piece from the Motley Fool on how to get out of debt by eliminating credit card debt. They start the piece with two quick summary points:
Unpaid credit card balances are the worst kind of debt. Come up with a plan for paying these off, and make it a priority. We offer six steps to get you started.
Personal finance is confusing enough without a stack of credit cards to track. Your goal should be to carry only one or two credit cards with balances paid in full every month.
Then they offer their advice on how to pay down credit card debt:
- Stop using your cards.
- Stop the flood of credit card offers.
- Always pay more than the minimum.
- Plan your attack.
- Reduce the interest rate.
- Consolidate your debts.
These are pretty good, but let me give you a bit more on this topic. Namely, how do you "pay more than the minimum" if you're deeply in debt and can't pay the bills in the first place?
Well, unfortunately, there's no easy answer to this. You have three choices to get the money to pay more than the minimum:
2. Decrease your expenses. First, you need to spend less than you earn. That may be the problem in the first place -- maybe you're spending more than you earn. If so, you need to get this under control quickly. Next, save even more by following some of the tons of money saving tips here at Free Money Finance.
3. A combination of #1 and #2.
For those of you who want to learn a bit more on this subject, check out these links: