SIX STEPS TO GET OUT OF CREDIT CARD DEBT

1. Pull Out Your Credit Card Statements And Get Them Organized

Pull out your credit card statements and get them organized in file folders. Also you may want to get a copy of your credit report from annualcreditreport.com to make sure there are not any lingering accounts that you are not aware of.

2. Complete Your Budget Worksheet.

Complete a budget worksheet and fill it out completely. Now write down the name each account, the outstanding balance you owe, the minimum monthly payment, and the payment due date.

3. Assign a Number To Each Account

You can calculate it by dividing the outstanding balance by the minimum monthly payment. (For example, say you owe $1,000 on your Visa card and the minimum monthly payment is $50. Dividing $1,000 by $50 gives you a number of 20. Do this for all of your credit card accounts.)

4. Assign a Ranking To Each Account

Assign a ranking to each account. The account with the lowest number is ranked #1. The account with the second-lowest number is #2. And so on.

5. Calendar The Due Dates

Calendar the due dates. Enter the payment due dates for all your credit accounts in your computer’s calendar system. Set your calendar software to remind you of each due date at least five days in advance so you don’t make any late payments and get hit with costly late fees and penalties.

6. Start Paying Down Your Debt

Start paying down your debt. Each month, as the payment due dates approach, make the minimum payment on every account…EXCEPT for the one with the #1 ranking. For that card, make as big a payment as you can manage. Ideally, your payment should be at least double the minimum. (Hopefully, FINDING extra money will make it easier to come up with the money you will need for this.) Once a card has been paid off entirely, you retire it and start paying down the card with the #2 ranking.

This is a good general jump start to your financial future. For more detailed advice you may want to seek a certified credit counselor. Also a lot of banks offer free programs to help you achieve your financial goals.