What is it you need to do to wipe out credit card debt? Will power is an essential element to attaining this goal. After all it said 'where there's a will there's a way' or I should say will power and the willingness to accept that something needs to change.
So what do we need will power for? Let's take a look:
– The will power to control your urge to keep on spending.
– Will power is needed to analyze your current financial situation – and the willingness to accept the outcome, good or bad.
– The will power to sit down and plan strategies to eliminate your credit card debt.
– The will power to stop using your credit card.
To wipe out credit card debt you need to do some planning. Make a list of all the credit cards that you currently hold. Note the debt amount, interest rate and minimum payment for each of them. The sum will be your total credit card debt.
Make sure that you have been making your regular payments and not incurring late fees and penalties. Depending on how many cards you have, plan your repayment strategy making sure each card has at least the minimum payment made. Opt to repay a higher amount on one of the cards in order to get rid of it. There are two trains of thought on this. The best is to pay the highest interest first but human nature makes us want to see an immediate result and therefore smallest balance should be the starter in this instance. As one is paid off you have more cash to pay towards the next credit card.
You will need to do a budget to get a realistic idea of your financial situation. Once you know how much you have coming in you will be able to calculate the sum to be paid to each of your credit cards. If the figures show that you have less coming in than what is needed to cover debt repayment and living expenses you will at least know that another strategy is required. You will have the knowledge to move forward and make changes.
If you find that your finances are not going to let you make even the minimum payment you should contact the credit card company and arrange to set up a repayment program. It is far better to be honest and show that you mean to get out of your situation than to let late fees and penalties further increase the debt. There may also be various balance transfer offers available in the market. Check these out to see if one has a lower interest rate that you may be able to transfer some of the debt onto, lowering the payments. BUT beware – do not use the card to accumulate more debt – only transfer existing debt.
Make sure that you seek help from a budget adviser if you are unable to agree and are feeling overwhelmed. But remember that "where there's a will there's a way" and with will power and an acceptance of your situation you can wipe out credit card debt. It will not be overnight but it will happen!