Large numbers of credit cards in our wallets, give us easy access to debt. Credit cards and debt are not real money. Every time you whip out that card, all you do is increase your stress, increase your debt, and decrease your ability to have a happy future and a secure life. It is important to change the way we think about debt, to eliminate the debt, and to change our spending habits.



There are no friends in the credit card companies. Removing your money from your posession is their only goal. If that sounds a little harsh, the truth is that this is war, and for the most part, the companies that offer credit in a predatory fashion, and that includes all of them, are the enemy. And they are winning.

As simplistic as it sounds, just ask yourself "can I pay for this in cash right now"? If the answer is no, its ok. Just save for it. Make the payment to yourself for 2 or 3 months, and then go make your purchase. Saving for 2 or three months, is better than paying for years to eliminate your debt.

We need good interest rates on things like mortgages and car loans. Clearly, these are areas where it is probably going to be necessary to borrow money. Large amounts of consumer or credit card debt will make it difficult to borrow money for these items. When your debt is large, you are considered a higher risk and may have to go to hard money lenders who will charge extremely high rates of interest. The problem can really grow out of control.

If you can avoid debt altogether, you have really dodged a bullet. A convenience card, or an emergency card is fine. I keep it at home in my desk drawer. It is used for emergency car repair, maybe new tires or other items I cant avoid purchasing. If you can afford your emergency expense in cash, then you are still better off. Debt elimination is not quit as easy as just avoiding the debt in the first place.

Destroy your credit cards, except for the one with the lowest interest rate. Begin a repayment plan starting with your highest rate card. If you get an offer to transfer your balance to a new card at a lower interest rate, take it. But keep on paying off the card even if you have to work more or spend less. Whatever you do, dont use the card!

If you have 5 credit cards, make the minimum payment on 4 of them. Make a higher payment on the one with the highest interest rate. When that card is paid off, apply that payment to the next card. Remember, to pay off a card, you must pay higher than the minimum payment.

Some card companies offer zero interest on balance transfers. Be careful, make sure its not a limited time offer. But if you get one of these, take it. Transfer as much as you can to the lower interest rate card, and then just dont use the card! You can eliminate your debt fairly quickly at zero percent interest.

Just imagine the feeling of freedom you will have when you no longer have to give up a large percentage of your paycheck to creditors, and you have completely eliminated your debt.