Getting Out of Credit Card Debt

If you are like most Americans, you probably owe a good amount in credit card debt. Let's face it; if there is one thing Americans know how to do well, it is spend beyond their means. Studies show that the average individual owes at least 8,000 in credit card debt. That's quite a bit when you add up all of the other expenses most people have, which commonly include a mortgage, car payment, as well as all of those fun monthly bills that never stop coming. Clearly the goal is getting out of credit card debt once and for all. In order to really make this happen, you must make a few changes in your life, and do so promptly if you really want that debt to disappear.

Initially you may want to address the number of credit cards you have. Maybe you have two or three. This varies from person to person, and so do the amounts of debt on each card. Add up all of the debt that these credit cards come to. Now take a closer look at the APR or Annual Percentage Rate on each of the cards. This is where you lose all your money each month. If you have high APRs, then you are likely hemorrhaging money in interest on a regular basis. Well, this is exactly what the credit card companies count on. It is how they make their money. Especially if you owe thousands of dollars on a card that has a high APR of around 18 percent or more.

One of the keys to getting out of credit card debt is to stop spending. Needless to say you cannot stop paying the utility bill, car payment, mortgage or food bill. However, you can cut off all spending on lavish items. Think about the things you purchase that you plain and simply do not need for anything. I'm talking about a new flat panel television to replace your 32-inch TV that isn't broken, or a new wardrobe of apparel that is not really necessary, but you just want it. The greatest problem with people and credit card debt is that everyone tends to spend on things they cannot afford. No money in the bank account means just charge it these days.

Watch everything you spend if you really are serious about getting out of credit card debt for good. Write down every penny spent every day. You can do this easily with programs for your computer like Quicken. Write down all of your bills and the money you should be spending each month. Do not forget to include expenses like gas, food, and pet supplies. Now, you can get a pretty good idea of what you should be forking out each month for bills. Does your paycheck cover these expenses? If you find that you should have more money than you actually do each month, then keeping close track of your spending will really help you with managing your income. Not to mention getting out of credit card debt by paying greater amounts toward your credit card balances.