What is the Best Way to Get out of Credit Card Debt?
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What is the best way to get out of credit card debt? One might think that the method would take some serious math equations to tell us which is the best way. After all, since money is a number, it would seem only logical the solution to any problem associated with it would involve math.
But math doesn’t solve the problem of debt. If it were a math problem, then we’d be intelligent enough not to get into debt in the first place.
Only a change of behavior can solve the credit card debt problem.
First, See the Overall Plan
What’s the reason to get out of credit card and other debt? So we get rid of the mill stone around our necks, right?? So we’re no longer a slave to the lender, right? Another VERY important reason is that we have other uses for our hard earned cash!
The overall plan has got to be to find total financial peace. The plan to eliminate debt is only a part in the big picture that leads you to living life to the full, having a great retirement and being able to save and give like you want to.
There is a wonderful program called Financial Peace University. Check it out when you have the chance. I am a graduate, and I want to share with you my knowledge on how to get out of debt and to finally get that fuller life. Please see my other articles under the Get Out of Debt Now tab at the top menu.
Next, Understand the First Three Steps
And again, getting out of credit card and other debt is only a part of the overall strategy of obtaining financial peace. But I’m going to tell you the very first three steps on getting out of debt.
- 1) Save an initial emergency fund of $1000
Start finding a way to place $1000 in a specific savings fund called an emergency fund. You want this because this is going to give you a beginning peace of mind that 
should some bad stuff happen that’s going to cost you money, the money will be there. If the car breaks down, you pay for it out of this fund. Try and keep this fund at the $1000 level.
No, you don’t whip out the credit card when the car breaks down or the water heater dies, you pay CASH for them from this fund while you attack the following:
- 2) Start a Debt Snowball
What is a debt snowball? It’s a way to pile up all of your debts so you can seriously knock them out of your life forever!! This is how you’re going to slay the debt dragon. But, you’re not going to have the desire to attack these debts unless you have a little ‘rainy day’ assurance fund in the bank.
So don’t start this without saving the initial emergency fund.
Debt Snowball
List all debts from smallest amount owed to largest, REGARDLESS of interest rate due (remember, this isn’t a math problem). If it’s a tie, list the one with the higher interest rate first. The plan is to pay off the debt at the top of the list while only paying the minimum owed on the others.
ATTACK the first debt on the list. Pay it off now, today!
Add what you WOULD have paid to the previous first debt on the list, pay to the NEW first debt on the list. Pay THAT one off today!!
Knock all of these debts out of your life, for good. Do it now and quit letting them run your life. Go ahead, rip the band-aid off. It’s going to hurt for a while, but trust me, you’ll heal and be much better for it!
- 3) Cut up the Credit Cards
Get all of the plastic out of your life for good. You might think, “well, I could use them in a pinch. I’m strong enough to pay them off on a regular basis.” Studies show that 
you are MUCH more likely to make impulse purchases. If you have to stop and think before you spend money on a thing, you may decide you actually don’t need a thing.
You register less emotional pain when you use plastic than if you have to think about paying cash.
Marketers are counting on your impulse purchase decision. Think about all of that stuff that is currently in your garage or closet that you purchased on a whim.
Dump the cards and start a life of paying cash for everything.
The Reason that This Works
The reason that this method works so well is that you begin to achieve serious success at wiping out your debts. You become super-excited about your power to do so and you rush to pay off the next one with all that you have! You get stoked, and you can’t wait to start living life like you’ve always dreamed!! It’s within your grasp. It’s very doable.
You’re Ready For the Next Steps
Now is the time — and only now that you’re out of debt — to take the journey to financial peace that only Financial Peace University can show you.
Understand that getting out of debt is the first step into a wider world of saving and giving like you really want. Without getting out of debt, the behavior problem that got us into debt in the first place keeps us from realizing the power of our income.
Once you see how powerful your income can be for you, you’ll get really excited about the possibilities!
More Info
Discover what is the best way to get out of credit card debt. Understand how you can join the debt-free revolution and to really feel the benefits that lifestyle has to offer.
Visit my complete review of Financial Peace University and an overview of their philosophy. You’ll be very glad you took this step!
I did, and I am a different person because of it. I am debt-free and and am getting ready to enjoy my retirement!!
I am not an affiliate of Ramsey Solutions, and receive no commissions from any of the information and links that I give to that site. But I am very proud of being an FPU graduate, and I hope that I have shown you the importance of being debt-free. If this has been helpful to you, please visit my Wealthy Affiliate links below and above.
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 About Steve.
A working guitarist, guitar designer, songwriter, worship leader and online entrepreneur, I have discovered that the key to online success (and success is more than money) is simply to focus on helping people be successful. |
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