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The 3 rules of credit card debt elimination

If you've had credit card debt that's been hovering around you for years, there's obviously something you're not doing right in order to eliminate it. If you want to finally get that debt under control, there are three rules you should keep in mind:

  • Write out a budget. Your budget will ensure that you're living inside your means. If you don't write a budget your debt situation will go from bad to worse because you'll be spending more money than you're making.
  • Create a debt payoff plan. Have a target date to this plan, and that on this date you will be debt-free. Simply intending to pay off your debts is rarely enough to get it don. Choose a payoff method and stick to that method. You should pick a debt-free date that's doable and stay true to your plan
  • Decide how you're going to celebrate reaching your goal. You won't want to be an austere penny pincher unless there's an end reward. Keep your eyes on that prize and you'll have all the motivation you require.

Following the above three rules will dramatically increase your chances of credit card payoff success. However, not everyone is generating enough income to pay off their debts in a feasible amount of time.

If your debt far exceeds your income, you might be an excellent candidate for bankruptcy. When you successfully complete your bankruptcy process -- whether it's Chapter 7 or Chapter 13 bankruptcy, you will have resolved your credit card debt and other types of qualifying debt once and for all.

Source: Forbes, "5 Mistakes Keeping You In Credit Card Debt," accessed July 27, 2017

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