The Knockout Combo: How to Beat Credit Card Debt Once and for All

by Mike on October 26, 2013

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If you find yourself in credit card debt, you’re not alone. According to the stats, it’s one of the most common sources of financial ruin, with the average U.S. household standing at a remarkable $7,072 in debt due to credit card expenditures.

Maybe it’s due to the fact that we’re a nation of excessive capitalists living beyond our means, maybe it’s due to the fact that credit card companies flood the market with unsecured cards that are easily misused in emergency situations—whatever your reasoning may be, it’s undeniable that credit card debt is a huge problem.

Put an end to credit card debt

So how do we rid ourselves of this suffocating burden? It certainly can be difficult. It often takes years of dedicated hard work and persistence to pay off such a mountainous debt, but when you finally get that monkey off your back you will feel the lightness of having broken free of the credit card company’s shackles at long last. Here’s how you get there.

Get Your Credit Reports and Scores

This initial part of the plan is often overlooked, but it’s a really good idea to take stock of how far deep in debt you really are. Getting a legitimate credit report will help you identify exactly what you owe, and to whom you owe it is a good idea. It gives you a better sense of how big your credit mountain is, so you can best prepare yourself to start climbing it.

More than anything, it’s about generating a positive mentality. Getting your credit score is like making a “to do” list: it helps make visible things which you may be pushing to the back of your mind in an effort to procrastinate and forget about them. Once you have on paper your debt situation, it is much easier to realistically confront and solve it.

Take Care of One Card at a Time

knockout_comboWith multiple credit card payments due, it’s easy to get overwhelmed and give up. And it’s very likely that if you are in debt on one card, you’re in debt on another. The average American credit card holder had 3.7 cards in 2009. Paying off monthly debt on three or four cards can be extremely burdensome, if not downright crippling. The only way to ensure that you’re making progress is to set your sights on one and put the others on the back burners. Once you’ve proven to yourself that you can pay off one the cards, it will be easier to motivate yourself to wipe out the rest down the road.

Look Into New Opportunities for Income

One of the hard realities you will have to confront at one point or another during your credit card debt repayment journey is the fact that if you do not start making more money, you will most likely find it hard to complete your repayments. It may involve taking on another job, or making some smart investments and hoping for quality stock earnings, or simply cutting down on your spending habits. But whatever your strategy is, you need to create a higher profit balance for yourself on a monthly basis so you can dedicate some portion of it towards paying off your debt and moving on with your life.

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There are always more ways to get yourself out of the financial hole that credit card debt puts you in, but this a good start. Right now, it may feel as though you’re totally buried, but once you manage to poke through and see some daylight, your motivation and dedication will soar. A positive mindset and dedication are the only tools you need to finally relieve yourself of debt and start living a life of financial freedom once more.

 

Writer Biography

This is a guest post by Nate Miller, a full time writer and a part-time guest-blogger. His main interests are Finance and Business, with a recent focus on Technology. He is constantly extending his fields of interest to incorporate news suggested to him by his readers. Also, if you like his writing, make sure to follow him on Twitter.

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