Simple Ways to Stop Credit Card Debt

Credit card debt can be a headache and hard to get rid of, especially if one has high interest rate credit card debt. With much discipline and a commitment to staring fresh, you can get out of credit card debt, and it doesn't have to be a miracle. Here's how:

Always pay your bill on time (never be late). Credit card companies jump at the chance to raise interest rates even if you are late one time. If you have fallen into the late trap, however (no worries, it happens to the best of us) you still must not neglect to keep paying off any negative balances or credit card debt. For your benefit, the government has instituted a new policy that prohibits credit card companies from hiking up interest rates further.

Try to pay more on over the minimum balance. Redbook.com states that if you owe $5,000 at a 15 percent interest rate, the expected pay off time would be 18 years to fulfill that debt! Add in the $9,000 in interest that you would have to pay off and that is money wasted. Adding simply $20 more to the minimum balance can divide that time and money in half and you could be paying off debt in eight years instead of 18(yikes).

Pay off credit early. You should look into a balance transfer in order to the credit card with the highest interest rate.

Don't go over the credit card limit. Credit card companies generally won't give access going over the limit unless a customer requests it in writing so just because you have the ability to do so, don't. Go over your credit limit will reap costly infractions for you in the future.

And Finally....

Don't spend money you don't have! Eliminate credit card debt for good by not using or minimizing the use of the credit card. Don't use credit on shopping sprees or on indulgences that your should be paying for by cash or debit (and you know what those indulgences are...I knew in the back of my mind but never listened until I got in debt). Pay for purchases by cash only!

If you absolutly must have a credit card, we totally understand. Credit cards are not evil if you can practice managing them and invest in the right ones.

1. Never carry a balance. Shop around for credit card incentives that will give you perks for a 0 balance like points towards airline miles, hotel/rental car discounts, and shopping incentives.
2. Only get credit cards that allow you to have a grace period of 10 to 20 days.
   
3. Look into a credit card with NO or LOW annual fees). Beware of usage fees which are totally separate from annual fees. These fees can kill you if you don't use their cards enough. Stay away from them.