Time to Cut More Than Credit Cards

Credit card debt is not only the easiest pit to dig for yourself, it's also the easiest pit to stay in for the rest of your life. Credit cards are so hard to pay off because the typical interest rates will make your debt double every 5 to 6 years. That means if you can't pay what you owe now, before calculating how much interest will accrue, within 5 years, you will never get out of debt. Never. Recently the major credit card companies raised their minimum payment to 4% - but that only means you will pay about 160% of what you charged, instead of nearly 250%, before it is paid. If you think gas prices are outrageous now, just think if you bought gas on credit while already deep in debt and ended up paying half again what it originally cost!

Video: Understanding How Credit Cards Work

Spanking Your Inner Child

You've heard that kid in the department store - “but mommy, I want it!” Here are the top 10 things you should deny your inner child and instead put the money toward credit card debt.

That neat, shiny new gadget which will make your life just so ultra simple, should stay on the shelf – this includes the newest iPhone or Blackberry. Now is not the time to get into a status war with gadgets.
You don't need the new and improved version of what you already have either. The key words in that statement - you already have it.
Even though they might give you the loan, you absolutely should not buy a car, house, boat, motorcycle, or any other kind of rich man's toy.
Actually, let's take that a step further into reality – you cannot afford anything that you cannot pay for with the cash you have right now.
Sorry, you can't treat your friends to dinner or a round of drinks. They might think you're being selfish, but buying that round of drinks now might mean you're asking for a handout later.
A vacation – are you crazy? The whole reason you're in this mess is because you weren't responsible to begin with, so why do you need a break from responsibility?
All those glitzy extras on your cable TV service need to go too, if not the entire service. The expense is bad enough, but the ads will torture you even more.
You have been getting along just fine all this time without that grill, new wardrobe, luggage set, and computer. Don't bother.
You might not think anything of getting your hair and nails done and tanning once a week, but your bank account definitely feels the hit.
Last but most certainly not least (expensive), eating out needs to get cut out. You're paying more than 10 times the cost of the food just to have it cooked and brought to you.

Video: The Cheapest Man in America (Ripley's)

Treading Water?

If you have made all the cuts you can, and you still can't pay off your debt within 5 years, then debt consolidation is definitely a way to go. By reducing your rates and monthly payments, you will be able to pay off the debt at your pace. However, getting a debt consolidation loan doesn't mean you're out of the water – just that you won't have to swim for too much longer.

More Resources:

Auriton Solutions
(877) 322-8777

Consumer Credit Counseling Service Of Los Angeles
(800) 750-2227

National Budget Planners Of South Florida
(954) 785-8618

Tides Foundation
(415) 561-6400

Family Debt Arbitration
(603) 483-0593

Commonwealth Catholic Charities
(804) 285-5900

Ifmc Down Payment Asstnc
(386) 668-3636

Blue Haven Capital LLC
(630) 588-3800

S C Ministry Foundation
(513) 347-1122

IA Global Inc
(813) 261-5157

Mass Housing Investment Corporation
(617) 850-1000

Cape Ann Commercial Fishermans
(978) 283-2959

Global Financial Partners Inc
(813) 261-5116

JP Morgan Investor Service CO
(617) 557-8000

Patient Financial Concepts
(973) 396-2668

Clinton Global Initiative
(212) 710-4400

Financial Supervisory Service
(212) 350-9388

Chautauqua Opportunities Inc
(716) 664-4999

Greenpath Debt Solutions
(574) 293-0075

Consumer Credit Counseling Service
(505) 884-6601

ClearPoint Credit Counselors Solutions
(800) 737-2933 800

Lonnie Bowman Ministries
(229) 446-1664

Family Foundations
(904) 396-4846

Solidary Credit
(305) 406-0188