Secret To Avoiding Credit Card Debt

Despite your best intentions, you’ve managed to let your credit card debt pile up again after refinancing or taking out a home equity loan. Now that the damage to your credit score is a done deal, what’s the best way for you to climb out of the latest financial hole you’ve dug… for yourself, and how can you avoid making the same mistake again in the future?

If this describes you, it’s important for you to look carefully at all aspects of your personal financial life in making an honest assessment of your situation. First, why did you start accumulating credit card debt again in the first place?  

If your credit card spending got out of control as a result of a job loss or a reduction in income, that’s one thing, but if simple overspending or a lack of financial self-control is behind the latest spike in your credit card account balance, you have a larger problem to tackle immediately. 

Millions of people can responsibly use credit cards without giving in to the temptations staring them in the face at every turn.  If you’re not one of them, don’t cry yourself to sleep.  Instead, take temptation out of your hands.  Lock the credit card up where you can’t easily get access to it – or the almost unbridled spending power it gives you.  If that doesn’t work, or you can’t stay away from online spending opportunities, you’ll have to take more drastic measures:  Get a pair of scissors and cut the cussed credit card in half and then call the credit card company and ask them to close your account.  Then you can pay the balance off without the worry of succumbing to the temptation to spend money you don’t have.

How bad is the financial damage this time?  If it’s relatively minor, you can cut your losses by slicing the cards and paying your balances off over a short period of time.  However, if you’ve really been naughty you may find that you could benefit from a home equity loan if you have adequate equity in your home available.  This is only a viable option for you if you have a large amount of credit card debt and you’re willing to take control of your financial destiny by eliminating the credit cards.  Otherwise, this will become a predictable cycle that will continue repeating itself once every year or two.

You want and need to make intelligent financial decisions.  So look into your heart and decide what kind of a credit card spender you really are.  If you shouldn’t be trusted, take the temptation out of your hands and rely on cash to pave the way to the fulfillment of your wants and desires.

In the short term it will be painful, but in the long run you’ll have more money and you’ll reach your financial destination with your finances – and your budget – intact.

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