Investment Tip

How to eliminate credit card debt

Credit card debt is a major contributor to individual and family financial struggles in America. In 2005 the average credit card debt level for American families was $9,312. Eliminating your credit card debt and managing it in the future is very important for your future and, while it will take some discipline, you can do so fairly easily by following the plan below.

• Don't charge anything, anytime, on any credit card until you've paid down your current credit card debt to zero.
• Pay for everything by cash or check.
• Cut up all your credit cards except for one.
• Use your remaining card for EMERGENCIES ONLY.
• Pull together a list of all your credit cards and the amount owed on each.
• Pay off the card with the smallest amount first while paying the minimum on all others.
• Pay off the card having the next lowest balance and pay the minimum on others.
• Continue this process until you are free of credit card debt.
• Then, in the future, never charge more on your one remaining card than you know you can pay in full each month.