Getting out of credit-card debt can be a lot easier than it seems -- if you're able to use discipline. First, you need to resolve to curb your credit-card spending. Commit to only using your credit cards to buy things you absolutely need, and that you'll be able to pay off, in full, at the end of the month. If you're unable to do this, either because you need more than your current income and expenses allow or because you simply lack the will power, then you will not be successful in getting out of credit-card debt on your own -- you'll need a little help.
But if you are able to curb your credit-card spending, the next step is to ensure you can pay at least your monthly minimums on each of your credit cards, each month. Cut back where you need to.
If you're able to curb your spending and pay at least your minimums, the next step is to save a little extra cash each month and apply it toward your debts. Even if it's only $20 a month, it will go a long way when allocated in the most effective manner possible. But most people can find a way to sock away an extra $5 every workday, which works out to more than $100 a month.
But what do you do with the extra $100? Simply apply it to the credit card with the highest interest rate and you'll see that balance drop like a stone! When you only pay the minimums, the bulk of your payments are going towards interest, which is why your balances never seem to go down -- paying an extra $100 takes a flat $100 extra off your balance each month!
It's important to note here that you must keep paying the same payment on each of your cards, each month. As your minimum payments chip away at your balances, the minimum payment required will drop, but this is a trap -- don't fall for it! Keep on paying the payment you've gotten used to and more of your payment will go towards paying down the balance.
When you finally get your first credit card paid off, take the total monthly payment and apply it to the card with the next highest interest rate. Repeat this process and in little time, you'll be credit-card debt free.
Of course, this plan can't work for everyone. Many people are so deeply in debt that they can't even pay the minimum payments on their cards, let alone save up an extra $100 each month. For these folks, services such as credit counseling, debt management, and debt settlement should be looked into.
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