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A 3-step process to getting out of credit card debt

We all want to get out of credit card debt, but the idea can seem daunting. There are some things that you can do, however, which will help you get out of debt over time. The following three-step process can work, if you have a steady income, if you're diligent and if you stick to the process without wavering over time.

The first step involves using cash or your debit card instead of credit cards. You can even try using PayPal if you need to buy something online. Prepaid cards are also useful for this purpose. The cash-only system will help you not rack up any additional credit card debt. To ensure this is realistic, you need to build up some savings for emergency expenses.

The second step involves paying as much as you can over your minimum amount due. The average balance of $7,527 will take 11 years before the debtor can pay it off, and that's at an interest rate of just 13.51 percent. Most debtors have a higher interest rate, so most will take longer to pay off this amount.

The third step is to save your money for something the old fashioned way. Do you remember when your parents made you save your pennies for something special when you were a kid? It's so easy to swipe your plastic, but it's much more gratifying -- and it won't get you into debt -- if you use the money you have available right now to make your purchases.

This strategy can work well in many cases. However, in other situations, King County residents will never be able to get back in control of their debt situations. By speaking with a qualified bankruptcy lawyer, however, those in debt trouble can evaluate their circumstances to determine what debt resolution strategies will be most effective for their needs.

Source: Forbes, "3 Simple Steps Can Get You Out Of Credit Card Debt This Year," accessed May 17, 2017

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