Eliminating Credit Card Debt

Now that it's July 2008 I must sadly report that I did not meet my lofty goal of eliminating my credit card debt by January 15, 2008. To attempt a 90-day project like that during the peak of holiday season was sheer madness on my part.

But hey! I'm still here. And I'm back with yet another new goal. It's more realistic to believe that you can get to a point of paying down debt quicker by making slightly larger monthly payments, right? So, even though your debt may not be totally eliminated within 90 days, you will at least be on the road to financial wellness.

OK, so instead of 90 days, let's make it 150 days starting July 15, 2008. That means that by December 15, 2008 our credit should be totally under control.

WARNING: A feel good moment on 12/15/08 will not give us the license to take out a new loan to buy out the stores of all the available holiday gifts! That kind of foolishness will only set up a dangerous cycle - one that those pesky bill collectors will love to see us get into. Avoid this danger at all costs! By December 15 we will be strong. Work with me on this. And be sure to Add this lense to your favorites so that you can keep up, observe, and play along with our credit repair "game".

This can be the "deal breaker" for a lot of folks who are in in debt up to their eyeballs. A good bit of reasoning goes like this: "If I intend to raise my credit score then I have to first pay my bills". D'oh! That's right! In order to eliminate credit card debt you've got to have some money to pay your creditors.

If you're reading this and you have a full-time, well paying job (or other means of generating more than a subsistence income), them finding the cash to pay down debt may be as simple as setting up a sensible budget.

If, on the other hand, you're reading this and your paycheck barely covers the utilities, rent, groceries and transportation to and from work, then you're in a bind. Realistically speaking, unless you learn how to economize even more your only other alternative may be to get a second job.

Have you heard that it's possible to live on $25 worth of groceries a week? Check out these "challenge"" that people have put themselves through to see how people manage to live with government assistance: Food Stamps.

Food stamp challenge: Live on $25 for a week
http://findarticles.com/p/articles/mi_qn4176/is_20070429/ai_n19063371

21 meals on $25 a week? A taste of living on food stamps
http://www.denverpost.com/headlines/ci_6078095

Week Two: Teenager on a Food Budget Experiment
http://www.debtfree-revolution.com/2008/03/31/week-two-teenager-on-a-food-budget-experiment/

Not only is the price of transportation to get to and from a second job an issue, you've got to consider the time investment. That means time away from your family. For some of you that adds the additional burden of child care expenses.

Let me make a general assumption at this point. If you're reading these words on a computer screen right now, you obviously have access to a computer and an Internet connection. You are (and this is again my assumption) interested in raising your credit score and eliminating your credit card debt. That's why you're here, after all!

Now, if you had a chance to read my original version of "Eliminating Credit Card Debt" you found (and, for your convenience, will still find below) Six Strategies for getting debt cleared up and working toward a high credit score. Let me sadly remind you that I was writing that just at about the peek of the 2007 Holiday season. I was SO naive. Well, let's avoid being the hopeful dreamer this time as we get to work and created an improve credit score.

If you want to read along and follow this game to raise your own credit score, please take a minute to complete the survey below. Your answers will help me in updating this lens in order to help those of us who are ready to get out of debt and stay out of debt.

Be sure to the rest of this lens. I originally built this back in October 2007. You'll get a better idea of where this new found resolve to get out of debt (in a timely fashion) originated. And, again, be sure to add this lens to your Favorites so that you can keep a watch over how we're doing.

Strategy #1 Seek out a debt consolidation lender or credit card that will let you consolidate your high interest loans and charge cards. Be sure the lender offers a lower interest rate than what you're currently paying!

Strategy #2 Call each credit card lender and try to negotiate a lower interest rate. If they refuse, tell them that you've recently gotten an offer from another lender who will give you a lower interest rate if you transfer the entire balance from your original (high interest charging) credit card.

Strategy #3 If your credit card lenders refuse to negotiate lower interest rates with you, ask if they will consider waiving the annual fee. This will only work if your credit card actually requires an annual fee, of course.

Strategy #4 Once you're done attempting to negotiate with all your creditors, re-evaluate your situation. It is now time to transfer the high interest balances that could not be negotiated lower to your debt consolidating lender's credit card. Be sure to close those old empty accounts to eliminate the temptation to pile on more debt. However... you might consider calling upon your self-discipline and keep them open to improve your debt-to-credit ratio. (More bout that later).

Strategy #5 Commit to avoid buying anything on credit until you've paid down your current balances. This can be tough if you're struggling with the guilty conscience that the Holiday Season can give you. Keep motivated by telling yourself that eliminating credit card debt will be your gift to both yourself and your family this holiday season.

Strategy #6 Get creative and make more cash. Have a garage sale or auction your things off on eBay. There are many ways to make money that don't require much (or any) start-up cash. (I'll talk about that in detail later as well).

Now that Holiday Season 2008 is approaching, you might want to get a head start on eliminating credit card debt. In fact, your neighbor has probably made a point of shopping all year so that she could take advantage of sales and spread out the purchasing madness.

Your other neighbor is waiting until the last minute, so you just know he'll end up spending more than necessary on fuel alone just to get to the crowded shops to buy high priced gifts out of guilt and obligation.

Your neighbors will also spend New Years Eve making a resolution to work extra hard - even find a credit counselor - to help them eliminate the previous year's credit card charges. This is the one time when it's better not to be like your neighbors, "the Jones".

Here are some simple strategies to make your spend-thrift neighbors want to be more like you after they see how carefree you are about having little or no credit card debt by mid-January of the next year (in this case, January 15, 2009).

There you have it - six step-by-step styled strategies you can do to eliminate credit card debt.

BUT... the absolute first step is having the money to pay down the debt! What do you have to do to make that happen? You - me - we must all make that decision if we truly want to make the 2008 Holiday Season/Christmas Holiday Season the most financially comfortable ever.

Next, be sure to keep good records of people you talk to as you make contact with lending representatives. List the outcome of every contact. Make a commitment to pay off all your bills and experience peace of mind this Holiday Season 2008.