First I will have to come to terms with the current state of my finances.  I must understand what my monthly statements and bills are saying on one hand and what my bank books and pockets are saying on the other.  Each of them has their own vested interest in my life, but all of them will agree that it is time to lower my debt.

If we are to be honest with ourselves, our current state of finances is that we are dependent on several credit cards in our wallet.  At this point it would be good to establish what credit card companies we owe money from, how much we owe them separately and collectively, and what interest rates apply to each.  From there on, we should set our priorities by making bigger, regular payments on that account with the highest interest and maintaining full, timely payments on all the rest.  As a rule we should never go below the minimum required, and as much as possible we should never be late with our payments.

Because ATM machines dispense money so efficiently and conveniently, it would be so tempting for me to make a quick cash advance from my credit card and justify the usage as a necessity or an investment.  But because I want to lower my debt, I will fall in line at the ATM machine less often and only when I really need to.

Our cash advances are meant to be used at an hour or need.  They are our emergency back-up of funds.  Those big purchases can wait for a better time when we can afford to spend and not borrow.  We just have to start living within our means and spending within what we are actually earning.  Otherwise, we will never get out of debt, only deeper into it.

Easy to say but hard to do, I will lower my debt by saving for a rainy day.  It seems that with all the expenses there is never enough even to set aside, and money simply flows through your fingers.  But it take guts and willpower to hold on a little tighter to your resources and start saving up what little excess you have.  Call it something you can really bank on.

We always associate the concept of saving with setting aside extra money.  However, savings can also figure in terms of cost-cutting measures.  Spending less means saving more, right? It means switching off the lights when they’re not being used to save on electricity or planning our trips and errands around a schedule to save on fuel.  It is not always a matter of having extra but more a matter of making extra.  The issue on saving should not be regarded with a feeling of dread but more with an attitude of anticipation.  The difference we are creating is all for the better, and the effort will all sum up to something productive for us.

If I want to lower my debt, I will devise more ways and means than these.  I will simply have to take charge of my life, and so will you.

If you are reading this, chances are you are in pretty deep financial trouble, or at the least worried about your credit card debt situation.  A lack of foresight and careless spending is what usually leads to these kinds of situations, but the current economic crisis has driven even those who manage their accounts well into the red.  Getting out of credit card debt is far from easy, and will require many sacrifices on your part.  The rewards for doing so on the other hand, outweigh the potential consequences should you choose not to take steps to save yourself.

If you are in a credit card crisis, the first thing to do is to stop using your credit cards altogether.  Every time you swipe that innocent-looking plastic card, you saddle yourself with more interest and more monthly payments which will exceed the price of the items you bought.  Before you can cure your debt disease, you need to stop adding to your list of debts first.  Think of it as fighting off new infections before getting down to cleansing the body.

By extension, the above guideline means that you should use cash whenever possible.  Getting out of credit card debt will require you to turn to more old-fashioned, but more cost-efficient means of commerce.  Why is cash “cost-efficient”?  Because with cash, you pay exactly the amount of the product or service, with no interest attached.  It may be less convenient, but at least you will not have to worry about monthly payments.  The next time you go to a grocery or restaurant, pay with cash and see how it reflects on your monthly bills.

The next thing to do will probably take the most willpower.  In this next step on the path of getting out of credit card debt, you will need to pay more than the monthly minimum balance; much more, as a matter of fact.  The minimum balance tactic is a method used by banks and credit companies to keep you feeding them with money for as long as possible.  By paying off larger increments, you slowly reduce the monthly interest by chipping away at the principal amount from which your monthly payments are calculated.  More money towards paying off debt means less money for use at home and for recreation, but it sure beats losing the most valuable material possessions you have; not to mention legal issues on social stigmas.

If you have some money in savings, then use it to pay off your credit card debt.  Savings accounts grow by about 1 to 3 percent per annum, but your credit card balance has an interest rate exceeding 10 percent.  In other words, unless you pay the credit card debt quickly, your savings will not be able to save you.  Getting out of credit card debt will mean that you may have to sacrifice your nest egg, but remember the benefits for doing so.  You can get back to saving up again after you rid yourself of your ever-mounting debt.