Wiping out your card debt is easier thought than accomplished. If you are a credit card user, you have already enjoyed the benefits of this service where you can pay for purchases without having to wait to build a balance in your bank. The more one spends on a card without planning on how to pay for the purchases, the closer they are to reaching a point where their savings are being compromised to jus pay off a debt. An average credit card user who just makes the minimum payment on their purchase takes about 20 years to pay it off and will end up paying about three times the initial amount spent!
The first step to free yourself of debt - be it credit card or any other form of personal debt - is to acknowledge the fact that you may end up in debt and to start being responsible. As with any type of freedom we enjoy, freedom from debt also comes with a responsibility. You have a responsibility to spend wisely and a responsibility to save up your savings for a time you or your dear ones will need it the most.
Once you have agreed to be responsible, obtain a copy of your credit report from one or all three of the national credit bureaus - Equifax, Experian, and Transunion. Once you have a copy of your credit report, go through it to understand the outstanding debts you have, and with which institution. In case there is a mistake or you find an institution listed that you thought was paid off, seek clarification from both the credit bureau and the institution. After that, calculate the total debt that you have and evaluate options to repay them. An extremely dangerous practice is to refinance your home and then continue using your card to pay it. Needless to say, this is very risky. In case you are not able to pay it off with a maximum of 40% of your savings, seek help in consolidating your debt.
You could also use the consumer credit counseling service (CCCS) to help you manage your outstanding debt. CCCS services are a not for profit service that will help you consolidate all your debts and make a single, affordable payment each month. You could save up to 60% on your regular payments. Moreover, a good portion of the payments that you make will go towards your outstanding balance rather than interest payments. Most creditors also welcome this service and have enrolled their sponsorship.
In case you have managed to pay off your debt with either your savings of with a consolidation service, you shall embark on a crucial journey to ensure that you stay out of debt. The first and foremost thing is discipline. It is easy to be tempted with seemingly attractive offers and displays, you will need to maintain the discipline required to resist them and lead a debt-free life. You will have to find the willingness to curb your wasteful spending and contemplate smarter purchase decisions.