Suzanne Boas, a president of the Consumer Credit Counseling Service says, “Using credit cards for purchases can be misleading…It may seem like you aren’t really spending money and, before you even realize it, you have amassed a large debt that is difficult and costly to repay.”

If you are struggling with credit card debt, there are simple ways that you can minimize your mountain of debt.  By following these tips, you can eventually eliminate all of your credit card debt and build towards a stronger equity future. 

Limit the use of high-interest credit cards

The newest fall fashions have just hit the shelves, or you feel like relaxing on a luxury cruise.  Do not get out your credit cards and start racking up your bill, in fact stay away from the temptation shopping brings. In order to minimize the amount of credit card debt you are faced with, you need to stop using high-interest credit cards. Suzanne Boas recommends, “Don’t use credit unless you absolutely have to.”

You must learn to ask yourself “Can I pay cash for this?” or “Do I really need this?” If you answer no to either of these questions, then it is time to put the credit card away. In order to minimize your credit card debt, you cannot make any more new charges.  It is important that you understand that in order to build a financially better future, you cannot live beyond your means. Some wealthy individuals only carry an American Express green card since the balance has to be paid off each month. Besides that, their wealth mentality would never let them pay credit card interest period. Follow their lead to wealth.

Only use a credit card with a low interest rate

If you do have to use a credit card for a purchase, only use a credit card that has a low interest rate or one that requires you to pay the balance each month. A credit card can be compared to a short-term loan. Think about the cost of the purchase you are making and how much you will actually be paying in reality. Minimize your credit card charges by only using low-interest rate credit cards. If you continually use high-interest rate credit cards, you are setting yourself up for a financial disaster.

Pay more than the minimum payment

Some people only pay the minimum payment amount on each credit card they carry. This is an ineffective way to minimize your debt; in fact, you are maximizing your debt. By only making the minimum payment each month, you are paying more and more money in interest charges.  Only a small amount of the minimum payment goes to principle; the vast bulk goes towards earning the credit card company interest profits.  Only use a credit card for a purchase that you will be able to pay off entirely when the bill arrives.

By paying more than the minimum payment amount, you will have your credit card debt paid off in no time at all.  For example, one woman had accumulated $14,000 in credit card debt over six years.  By working overtime and paying more than the minimum amount, she was able to pay off all of her credit card debt in only five months. You can easily minimize your credit card debt with a little determination and financially savvy. For more stories of inspiration visit the CCCS.

Consolidate you credit cards

Debt consolidation means you combine the balances of several credit cards onto your lowest interest rate card but continue to make the same amount of monthly payment. This little ploy will increase the amount of principle you pay each month, reduce your debt faster and improve your credit score dramatically. How, by combining the accounts, your credit report will show several paid off accounts as well as a strong payment record on the remaining account.

It is important to remember that you should only use a credit card if you absolutely must.  Credit cards are very dangerous, often compared to being a kid in a candy store.  Many people who start charging find it very hard to stop.  When you live within your means and curb credit card usage, you will immediately watch your credit debt drastically reduce, while your credit score improves.