When we carry a large number of credit cards, it is just human nature that we use them. When I was in the debt mode, I used to actually think to myself "wow, I have 50 thousand dollars in my pocket". That was a pretty destructive thought process. If you don't incur the debt, your better able to save for the future and have money ready when you need it. Change the thought process, and change the habits.



You have no friends at the credit card companies. They have one goal in mind and that is separating you from your money. Insuring that you are in debt, and continue to pay them for months and years. While it sounds simplistic, if you can't pay for it in cash, you can't pay for it at all.

Remember, being a little short because you made a purchase of something that you wanted or needed is one thing. Being short, and having the credit card companies drown you in increasing debt for years to come is much worse.

Mortgages and auto loans are areas where we want the best interest rates. If your consumer debt is too high, both of these areas will be difficult. If our consumer debt is really high, debt elimination programs may be necessary before we even buy things like homes and cars.

Credit cards are not extra money. They are convenient, but should be used for needed items. If you have enough will power, then keep one available for emergency purchases. By emergency purchase I mean new tires, or car repairs, not a new T.V. Stay out of debt, by avoiding it altogether. Its easier to avoid debt than it is to eliminate debt.

When your debt becomes a problem, you are better off destroying all but your lowest interest rate card. Make some room in your budget to begin paying off your highest rate card, even if it means working more, or spending less. Whatever you do, don't use the card!

It is vital to pay more than the minimum payment. Let your payments snowball, and you will eliminate your debt sooner. If you have 5 credit cards, make a higher payment on one, while paying minimum on the others. When that one is paid, apply the payment from the first card, to the next one.

Transfer your balance to a lower rate or zero rate card if you get an offer for one. Just don't use the card! Debt elimination is easier at zero percent interest. Don't get stuck in the "low introductory rate" trap. Make sure that the balance transfer amount stays at the lower interest rate until it is paid off. Then, ideally, destroy the card.

Just think about how much less stressed you will be after you have eliminated your debt.