| Credit card debt creates anxiety and financial chaos. | | | | that you know where your money going to come |
| It caused many people trap into serious financial issue | | | | from each month to reduce your credit card debt. |
| since the introduction of credit card. This plastic card | | | | - Things that you willing to change or give up to |
| create easy and convenient payment scheme for | | | | make the goal of being debt-free happen. |
| you to buy things without the need to worry about | | | | - Explode a few ways to increase your monthly |
| cash inside you wallet; frequently make you over | | | | income to cover for your debt payment. |
| spend your money and create debt. | | | | - Assets that you may sell off to cash out to pay |
| The situation getting worse with the best feature of | | | | for your debts. |
| credit card, the minimum monthly payment; you no | | | | Start out with baby steps, paying more than the |
| need to pay in full of credit card balance each month, | | | | minimum each month. You can either choose to pay |
| just pay the minimum amount will do; the credit card | | | | off the card with the higher interest first or choose |
| balance snowballing month by month, when you start | | | | the one with the lowest balance so that you can |
| to realize that you have financial issue, most probably | | | | eliminate that one quickly. |
| you already at a bad debt situation. When you are in | | | | 4. Cancel all your credit card but leave one This may |
| the debt trap, more efforts and times are needed to | | | | be painful living without the credit card, but look what |
| get out from there. | | | | having these cards has done to you. Get the scissor |
| The last option for debt free is filing a bankruptcy | | | | out and cut all of them except one so that you will |
| but before your need to choose this option, consider | | | | able to use it. Then, call to the credit card companies |
| this five-step program first to rid yourself of bad | | | | and call all your credit cards that you have put the |
| debt with bankruptcy. | | | | scissor on; this is to stop you from asking for a |
| 1. The desire to get out of debt | | | | replacement card later. |
| This is the most important part of any debt free | | | | Now, what do you do with the last card? Carrying it |
| program. Lip service is not acceptable because it is | | | | in your wallet makes it too easy to access and use it |
| going to be hard work on your part. It's going to | | | | for impulse purchase. You should keep it in a place |
| require lifestyle changes and breaking of bad spending | | | | where it will take an effort to retrieve it. This last |
| habits. You must get yourself ready and have an | | | | card will only be used for any emergency purpose. |
| ultimate desire to get out of debt. | | | | 5. Seek for professional help if you just can't manage |
| 2. Assessing just how much debt you have | | | | it on your own |
| Before you put in your actions to resolve your debt | | | | If you find that you can't manage your debts at your |
| issue, you need to know how much debt you have | | | | own, then getting help from debt managing |
| and who you owe. The best way is list down all your | | | | professional should be your option. You can contact |
| debts on to a piece of paper or enters your debts | | | | the National Foundation for Consumer Credit (NFCC). |
| into any of personal finance program you use to | | | | This is a national network of nonprofit organization |
| assist you. Then, break it down further by listing | | | | that provide consumer education, debt counseling and |
| down each interest rate of each credit card you | | | | debt repayment program. Their counselors can help |
| current paying of. The most current information can | | | | you set up a budget and re-establish credit. |
| be found on your card statement. | | | | In summary |
| 3. Devise a workable plan | | | | If you always trap into bad debt situation, |
| You need a plan that you can live with. Write it down | | | | bankruptcy filing a fastest step for debt relief but it |
| so that you will be more committed to it. You need | | | | is not the best option as the impacts will follow you |
| to stop adding more debts, stop using credit cards. | | | | for many years. Always access other alternatives to |
| And try to call your creditors and ask if they would | | | | rid yourself of bad debt without bankruptcy. The |
| be willing to lower their interest rate. Other actions | | | | above five-step program can be your guide for |
| that you can put into your plan are: | | | | better option. |
| - Generate and review your cash flow worksheet so | | | | |