I put myself through four years of college, on a combination of student loans, personal loans, income from my full time job and… credit cards.  When my loans didn’t quite add up to cover the tuition and books, my credit cards had to pick up the slack.  My job was basically paying for my living expenses (rent, food, utilities… life!)

Needless to say, I graduated college with thousands of dollars in credit card debt.  I also started my family a little earlier than expected- within a few months of graduating, so I needed to get serious about paying off my debt- and fast!  Here are some of the techniques I used to pay off credit card debt, and avoid the need for auto loans or other credit in the meantime:

  • I stopped using the credit cards- completely.  I quit cold turkey!  I literally just stuffed them in an envelope and put them in my file cabinet.
  • I called each of my credit card companies and negotiated lower interest rates.  I received 5% interest on each of the cards for a temporary period- which helped me make a huge dent in the size of the debt because more of my payments were going toward the balance and less was being eaten by the interest.
  • I used the snowball method of repayment.  This means I paid the minimum balance on all of my credit cards except for the one with the lowest balance.  On that card, I paid as much as I could afford until it was paid off.  Then, I applied the money I was paying on that account to the next credit card payment until THAT one was paid off. Each time a card was paid off I would have more money to apply to the next account.
  • I babied my car to make it last!  While my friends were running out and getting nicer (and more expensive) cars with loans, I was just maintaining my existing car – but without a monthly payment because I had already paid it off.

If you’re ready to get out from underneath credit card debt, you have to just make it your priority.  Most importantly- you’ve got to stop using the cards so you can pay them off.  If you continue to use them, even for small purchases, it will make it almost impossible to get caught up.

Getting out of credit card debt takes patience. The best thing to do is receive some credit counseling and try to get a handle on your finances. Don’t go through life with bad credit, get the help you need today.



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