Credit Card Debt

credit cards

credit cards

Unfortunately (but by design) most Americans are saddled with a heavy burden of credit card debt. Having credit card debt, especially credit cards with high balances, will adversely affect your mood and your outlook (whether you realize it or not), and will remain a major obstacle that holds you down in life.

Having credit debt has very negative side effects including stress, hopeless feelings of being bound to seemingly endless payments, feeling trapped, and even relationship issues due to the financial strain.

If you would rather feel liberated from your debt, to feel in control of your life’s finances, then the answer is to adapt a new way of life – a new way of thinking that will eventually leave you debt free…

You may not realize it (yet), but when you finally eliminate your credit card debt – you will become incredibly liberated and empowered to be in control of your own destiny.

The first step is to realize and understand that ‘the system’ wants you in debt. After all, this is how the banks make their money (by charging you interest on your payments and by keeping you in perpetual debt).

When you happen across TV commercials or advertisements or mailings for using a credit card, you must realize and understand that ‘they’ are glamorizing it – they are marketing ‘at you’ through images and messaging such that if you spend and use their credit card – that you will somehow be better for it – that your life and rewards will be classy, elegant, exciting and fascinating – as though in a higher level of society.


It’s all BS.


Note: For those who are already debt-free and use credit cards for their purchases to get their ‘points’ or rewards while also paying the total balance each month – that’s different. If you’re able to control your spending vs. debt, that’s great! However I will simply mention that the reason you get those discounts, rewards, or points – is because that’s how much your spending information is worth to them. They’re not giving you those benefits because they’re so nice. They’re using your data and they’re keeping track of your habits and movements. If you’re okay with that, then that’s your choice ;)

Okay, so the fist step was to realize the intent of the banks (to keep you in debt). The next step is to take your credit cards out of your wallet or purse and put them away somewhere – and stop using them. Period.

Use cash instead.
Use cash instead.
Use cash instead.

Go the ATM and get cash, and only use cash for your purchases. When using cash it seems very different to hand over your money rather than handing over a credit card. It really forces you to think about it more – whether or not you really need to make that purchase.

The next step is to start paying off your credit card debt. This may take awhile, but if you don’t start today, then you’re not serious about becoming debt free.

Pay Off the Highest Interest Rate Card First

Determine which credit card has the highest interest rate (not the highest balance) and pay the most amount of money that you can afford each month on that highest rate card while paying the minimums on the rest.

When that one is finally paid off, then do the same with the next (determine the next highest interest rate card).

By using this method, you will pay off your credit cards in the quickest way possible.

You must seriously work at minimizing your expenses during this period of time while you are paying off your credit card debt. The more you can scrimp and be frugal with your spending, the faster you will become debt free.

Give up some of your luxuries for awhile. ‘Brown bag’ your lunch. Eat more leftovers at home. Order out less. Examine your wants versus needs. Every time you open your wallet, think about if you really need to spend that money…

Trust me – your reward once you’ve finally paid off your credit card debt will be well worth the hard effort you put into it. Freedom.

Apologies in advance if credit card ads appear immediately below this article (those two spots are sometimes text-context-sensitive and out of my immediate control) ;)