In this day and age, it seems like everyone has a credit card or two. Unfortunately, most everyone has a pile of credit card debt to go along with it. The truth is, credit card debt will happen to everyone who has had a credit card. This is when you need to sit down and calculate your monthly expenses and your monthly net income. Though the degree of severity is different for each of us, the solutions are quite simple.

Step One: Penny Pinch – Miser’s and money go hand in hand

For the time being, only buy what you need. You don’t need that set of golf clubs or pair of shoes. You only think you do. And cutting down on vices can play a huge part two. In this economy and situation, it’s a great time to cut down on smoking or drinking beer. If you total how much you spend each year on those hard to break habits it definitely takes a good chunk of money out of what could be used for better purposes, and can help your health. A two for one package.

Carry cash with you more often, this will give you a better grasp on what you actually have. Carrying cash instead of a card makes it harder to be careless. When you limit yourself to the money you have in cash, you will be less likely to have unnecessary expenses.

Step Two: Get Organized – No better time then now to do it

Set up a plan for paying off your debt. Try listing all of your debts on paper, from smallest to largest. Make the minimum payments on your larger ones, and pay as much as you can on the smaller until they are paid off. Take whatever you have left after necessary bills and groceries, and pour it into making these payments, you will be glad you did later.

After you pay off the smaller debts, take that previous small debt payment, and start putting it into a savings every month. This will help you gain that much more independence down the road, allowing a little less stress and your wallet wont be so empty.

Step Three: Rinse and Repeat – Shampoo your way through

Continue making minimum payments on your larger debt. Now you can approach your new smallest debt balance the same way. It’s a repeat process that takes time and patience, but when followed, will help you to avoid getting into a worse situation financially. When all is said and done, you will have lost your debt, but gained much accountability.

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