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Kick the Credit Card Habit

Remove Credit Cards from your Constant Companion List
Remove your credit cards from your wallet or purse. Some would suggest cutting all of your cards up, cold turkey, clean slate, totally new beginning. If that’s too much to ask, consider cutting up all but one, and freeze that lone survivor inside a large block of ice or leave it with a trustworthy relative in a different town; anything that will keep you from using your card especially on impulse. The key is stop using credit of any kind as a regular part of your life. If you really want to get out of debt, you have to leave the path that got you there.

Cash is Still Very Much the King
Use a debit card if you’re buying online or for other situations where cash is not possible, but for all other Using cash for your spending is one of the best visual strategies available to get clear on how much money you actually spend. Using cash, the chances are much higher that you will think much harder about every purchase you make. This should also keep you from spending more than your budgeted amount. It is, after all hard to spend cash that’s not there to spend.

Lose Interest
Get clear on the interest rate you pay for each debt and actively seek to have these rates reduced. CNN Money suggests looking for offers with 0% introductory offers for a full year, or cards with lower rates and no annual fees. Any free method you can find to lower the interest you pay on debts will help. Don’t be shy about calling the credit card companies you owe. According to CNN Money, if you have a good credit score and you’re not already at their lowest possible rate, it should be possible to get your interest rate lowered. Regardless of your credit score, call anyway. It never hurts to ask.

Document Your Total Debt on One Page
List the companies you owe money to, not jus the credit card companies and beside each one, write the amount you owe. Arrange the list from the company owed the least, to the company that is owed the most.

Attack the Debt!
Noted debt elimination coach Dave Ramsey (daveramsey.com) counsels people to attack the debt by paying as much as possible, as fast as possible, first to the company that is owed the least. When you have that debt removed, congratulate yourself and move your attention immediately to the next debt, adding money that was going to the first, onto the next, and the next until each debt is paid. Put Other Debts on Auto Pilot Until They Hit the Top of the Debt Elimination List To ensure that you avoid late fees and associated penalties (like higher interest rates) created by a missed or late payment, for the debts that are not at the top of your attack list, consider arranging to have the minimum balance paid automatically each month. This should help you focus your attention on the debt at the top of the list.