How to Clear Credit Card Debt By Clawing Your Way Out

Credit-Card-Debt-300x225This post was written by Kevin Donovan from He often writes about how the decisions made by politicians and bankers affect our daily lives and the ability to cope with the economic stress of an ever more debt ridden world.

Every day we see large companies take large substantial hits.  This one to wonder: If they can’t survive this bleak economic climate, how can we?

It’s a good sign if you are asking yourself this question because it means that you clearly understand the gravity of the situation. If you have learned to live with debt, that is a start.  It means that you probably know enough to not get in any deeper while managing what you have.

But you can take it further.  If you follow these simple steps for how to clear credit card debt, you will be able to pay off your cards and give yourself the much needed chance to start saving some money.

How to Clear Credit Card Debt Steps:

1)      Firstly you have to understand why you are getting into debt. Banks and other lending institutions are making it far too easy to apply for a credit card in the first place. Often you can get an application form in the mail or online without having even asked for it.

You have to understand:

  • These companies have a vested interest in getting you in debt because that is how they make money.

Often even if you have just stepped into the workforce or became a university student, they will target you by making it even easier to apply.  You barely even need substantial income or in some cases any income at all for that matter!

2) You get into debt because you believe that these cards are manageable.  They offer you low repayment options and they give you the option of staying in debt indefinitely. Don’t get trapped!  If you are already, here are some tips of how to get yourself out of that rut.

  • First: Start by ensuring that you have direct payments set up on all your cards for at least the minimum amount.  If you can help it, payoff more!!  Setting up your account automatically will make it so you don’t have to worry about doing it manually and incur fees.
  • Second: Be disciplined and ensure that you stop using the cards altogether. To do this you are going to have to manage your income in such a way that you are always left with enough money to make the more vital purchases you need. Once you have managed to organize this far you are now going to want to try to put a little bit extra aside to start repaying your cards.

3) Consider if you have any consolidation options. If you want to consolidate all of your debt into a single place, make sure that you have a good enough credit rating.  Then you can start by trying at your bank, a loan from your bank with a repayment scheme will be the cheapest option on the market.

If this is not an option then you might want to consider about doing a balance transfer onto a single card that offers a low interest rate for an initial period. This will allow you to ensure that your debt is all in one place and that you can have an initial period where you can control the amount of interest you pay.

If you are unable to consolidate your debt due to factors such as your credit score, you have to make sure to resist the temptations of short term loans. The massive interest rates on these will force you further into debt and will in no way help your problem. These should only be used when you are sure that you can pay them off at your next pay cheque and if you have no other options.  If your debt has become unmanageable another debt relief option you should consider is debt settlement. This option allows you to settle your debt. Usually your debt can be reduced up to 50%. A debt settlement lawyer should be able to evaluate your case and let you know if you are a good candidate for debt settlement.

4) Lastly if you can’t consolidate your debt and you have multiple credit cards, make sure that you pay off the card with the highest rate of interest first. This will ensure again that you don’t fall any closer to having to declare yourself bankrupt. The main thing you will have to concentrate on during this period, is that you are disciplined enough to not break a constant form of chiselling away at your debts a little at a time.

Readers – How do you help yourself to clear credit card debt?  What options have worked for you in the past?

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