Get Out of Credit Card Debt Completely

If your credit card balance has started to get out of control you're not alone! UK credit card users owe billions, an amount steadily increasing year on year. But this is not a good thing. Having a large financial burden that requires consistent regular repayments whilst accumulating interest is a burden, and something that will tie you down when it comes to considerations such as moving home, buying a new car or even having a child.

If you have a large credit card debt the answer is simple. You need to get rid of it! To do this, follow the tips below, and you might just be able to wave goodbye to financial insecurity.

Get Rid of Credit Card Debt for Good!

The first thing debt ridden credit card users need to do is admit there is a problem. You much acknowledge that you're in trouble financially before you'll really be able to tackle your problem. Before doing anything else you need to calculate your expenditure and exactly how much you owe. Consider how much you owe to credit card companies, how much you owe as loans, and even weigh up your current account overdraft. You need to get back to black, so you must assess everything that is currently pulling you under financially, into red.

Now, consider your outgoings. To minimise your need for credit in the future, you need to tackle the debts you have right now. If you can, cut the interest payments on your debts. You can do this by switching your credit card debt to another credit card provider - one offering 0% on balance transfers would be best. A transfer of this kind will mean you stop paying out interest on your existing debt, and should allow you some more breathing space to pay it off quicker.

Once you've broken down your outgoings to a minimum, you must gather together all remaining debts. This will help clear them as quickly, and cheaply, as possible. To do this, work out which of your debts is charging the most interest. This debt is the one that's growing the fastest, and consequently the one you need to tackle first. However, before you start putting all your spare cash into this debt, bear in mind that you need to make the minimum payments on all of your borrowings, otherwise you will start accumulating expensive charges. Only tackle the debt with the highest interest if you have any spare cash after you've paid the necessary minimum charges on everything else. If you don't have any spare cash, you should consider switching this expensive debt to a loan or a credit card that charges less interest, or even taking out one low cost loan to pay off all of your high interest debts in one go, saving you a lot of money in interest over the next few months, or years.

Courageous debt tacklers (or perhaps just desperate!) should think about taking on another job to increase their overall income, and pay off their debt quicker. Earning an extra £25 a week could make a big difference to your debt, and make you feel much more secure. And if you can't find another job, there's always EBay. Selling off your old junk could prove more lucrative than you think!

Once you do reach the end of your loan repayments you must act responsibly. Don't celebrate by making purchases! Instead, start saving your spare cash by setting up a monthly investment scheme like an ISA or premium bond scheme. If you save for a year or two, you could build up a hefty wad of cash. If you still want to go spending mad then, you'll have earned a bundle to pay for your purchases, rather than being forced to leech off the credit card companies!