How Do You Get Out Of Credit Card Debt

How Do You Get Out of Credit Card Debt
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How Do You Get Out Of Credit Card Debt


A common question many people ask is how do you get out of credit card debt?   There are many ways you can go about doing this, so I wanted to list out five different ways for you today. Be sure that with any of these methods for getting out of debt that you first take care of the issue that caused you to get into credit card debt in the first place. If you do not take care of the symptom then you can never fix the problem.   You will need to stop creating more debt by stop buying things on credit. Go to a system where if you can not afford to pay cash then you must wait to make a purchase.   Here are five great ways to help you get out of credit card debt:



  1. Snowball Effect – A great way that many financial advisers will suggest to get out of credit card debt is to create a snowball effect. You simply prioritize your credit cards and pay off one, then take the money you were paying on that card, and add it to the amount you pay on the next one, and continue doing this until all of your cards are paid off. It is a good idea to allow yourself to experience some near immediate gratification by choosing the lowest balance card to pay off first.   Once you pay off this first card you will have the feeling of accomplishment and a reason to continue paying off the others.   The second card you should work on would be the one with the highest interest rate. This one may take you a little longer to pay off, but in the long run is the next best card to pay off. Follow this card by the next highest interest rate until you get all cards paid off.   As you pay off one card, and you increase the minimum that you are paying on the next card it will pay off much more quickly than you realize.  Here is a great example showing how the snowball effect works:
    Snowball Effect Example
    CardMin PaymentActual Pay201620172018
  2. Create A Spending Plan – Another great way to get out of credit card debt is by creating a spending plan. If you do not know where you are spending all your money, how will you know how to attack and pay off this debt faster? Use this spending plan tracker and record every penny that you spend every day for the next 30 days. You do not have to wait for payday to start tracking your spending. With this tracking spreadsheet you can start tracking today. (Download Now).   Track your spending to the penny. Write every thing down that you spend money on even if it is only 5 cents.   After 30 days, do an analysis and see where you may be spending frivolously and make a plan to reduce spending on certain items. Then use this savings to add toward paying off your credit card debt.
  3. Generate Additional Income – This one may sound crazy, but there are so many different ways you can generate additional income. Pick up a second or third job if necessary.   I would suggest looking online to make additional income. Use places like,, etc. Pick something that you know how to do and offer it as a service.   I have made extra money by testing iphone apps, reading and reviewing kindle books, and even providing comments to instagram posts.   Do you have a hobby? Maybe you like to bake cakes. Start letting people know you will bake cakes for their birthday parties, retirement parties, Jewish Bar Mitzvah, etc.    Have a garage sale, sale items on Craigslist, or ebay. Do anything you can to generate additional income to put toward paying off your credit card debt.
  4. Consolidate your loans – You can also consolidate your loans in order to get a hold of the situation. If you do consolidate your loans you need to make sure that you also take care of the initial problem and that is your spending habits, and spending money that you do not really have by using credit cards.   You need to be very cautious with this approach, and most financial advisers would tell you this is a horrible idea.   I do agree to an extent, but also know that sometimes having options is the best thing you have on your side.   You can use traditional banks to possibly get a personal loan to consolidate.   You can also look at non-traditional lenders such as to get a loan.   If you have bad credit there are even lenders that are willing to help you out. Check out the get a loan section of this website for many other options for getting a loan to consolidate your credit card debt.

    Prosper Debt Consolidation Loans

  5. Debt Management Company – You can also seek the assistance of a Debt Management Company. They can help you by negotiating with your credit card companies to get your interest rate lowered. They will also do the snowball effect by showing you how to pay off one card and then take the money you were spending on that payment and apply it to the next card.   You may get a small blip on your credit that says a Debt management company manages your accounts, however, it is not as bad as if you had to file bankruptcy.


So there you have it. Now you never again have to ask the question how do you get out of credit card debt. You can simply refer to this article or come back to my video at any time.   Be sure to check back on my website regularly as I will be giving you many financial related tips.

Here are my books on Get Out of Debt Without Ruining Your Credit.  Please pick them both up and leave a review.


Get Out of Debt Without Ruining Your CreditGet Out of Debt Without Ruining Your Credit

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