Tips on How to Get Rid of Credit Card Debt

Stop using your credit cards to help you get rid of credit card debt.bank statment and cut credit card image by Warren Millar from Fotolia.com

Credit card debt looks harmless at first, but can quickly add up and turn into a seemingly bottomless pit. Using credit cards correctly takes wisdom and getting rid of debt takes perseverance and serious commitment. The task of getting rid of credit card debt looks intimidating, but you can do it once you get the ball rolling and stay in control.

Know How Much You Owe

List the total amounts you owe on each card, the monthly minimum payments due and interest. Then, add up all the credit card debt you have. Seeing the big picture can give you a big goal to strive for (the total amount) and little goals to tackle first (the amount due on each card).

A budget can help you stay on track. Divide your expenses from the last three months into categories such as rent/mortgage, savings, groceries, utilities, cell phone, child care, clothes, hygiene products, fast food/restaurants, credit cards, gas, auto loan, entertainment and so on. Doing this will give you a good idea about where your money is going and where you can cut back on your spending. For example, if you see that you are spending $2 on coffee every day before work, make coffee at home and use the money you save to pay your credit card bills.

Instead of trying to pay off the largest amount you owe first, focus on the smallest amounts. Financial expert Dave Ramsey states the smallest credit card debts are the easiest to pay and get out of the way. Therefore, you should tackle those first. Once you do, you will have extra money to use toward paying off your larger credit card debts.

Stop spending money you do not have. It is harder to get rid of credit card debt when you keep using the cards to pay for items because you are just digging the debt hole deeper. Cut up your cards, place them in a safe or cancel your accounts -- do what it takes to stop using credit cards and pay for everything with cash.

Earning more money will give you more money to get rid of credit card debt. If you have a full-time job, consider babysitting in the evenings or weekends occasionally for your neighbors or friends, sell items you no longer use or perform odd jobs for some extra cash.