It seems these days that everyone is drowning is credit card debt.
The biggest problem with credit card debt is that once you are there, the credit card companies will do everything in their power to keep you there.
Did you know that it can take up to 30 years to pay off a credit card bill if you are just paying the monthly minimum? Depressed? Don't be.
There are some steps you can take that will get you on the path to living a debt free life.
Reduce your spending: The first thing you need to do is to go through everything you spend your money on and make choices on what is important and what isn't.
Next, determine if there are ways to reduce the amount you spend on the things you decided were important.
For example, when I looked at my cable, internet and phone bills, I was spending over $170 per month.
By contacting my cable company and bundling these services, I was able to reduce that bill to $99 per month.
I was then able to apply that $71 per month to paying off a bill.
Create a budget: Now that you have an idea on what you feel is important for you to spend your money on, you need to create a budget.
Draw a line lengthwise down the middle of a piece of paper.
On the left-hand side, right down all of your expenses.
Make sure to include everything including clothing and entertainment.
On the right-side right down your total monthly net income (after taxes).
Subtract your total expenses from your total income.
If you have money left over, great! If not, you need to cut expenses further.
Pay your bills on time: Nothing will ruin your budget quicker than getting hit with late fees.
If you are going to be late paying a bill, contact your creditor and ask them for an extension.
They will most likely give it to you if you ask.
Pay more than the minimum: As I stated earlier, it will take you almost 30 years to pay off a credit card if you just pay the minimum.
You need to start paying off the principle so add a little extra to your payment.
Ask for a lower rate: You will be amazed at how many times your credit card company will be willing to lower your interest rate if you just ask them.
There primary concern is getting their money back so it is in their best interest to keep you happy.
Use that information to your advantage.
Find a lower interest card: If you can transfer your high interest debt to a lower or zero interest card, do it.
This can save you a ton of money in interest charges alone.
Just make sure to cancel your old card so that you are not tempted to use it and wrack up even more debt.
As you can see, credit card debt can be reduced or eliminated by taking just a few simple steps.