by: Debbie Dragon

Many people today have mounting credit card debt. While some credit card debt is truly a necessity, most people have piled high credit card bills because of mismanagement. If you are one that has mismanaged your credit cards, getting them back under control can seem impossible. With some hard work and dedication you can get your debt back under control and learn to use your credit card wisely.

The first thing you will need to do is to look at all of your credit card bills. Total what you have, look at the interest rates you are paying and what your monthly payment is. Now stop using your cards, at least for the time being.

Next, developing a monthly household budget will be essential to paying off your credit card bills. Determine the monthly household income, and then list out all of your expenses. If your expenses are more than your income, you will need to find a way to trim your bills and or pick up a second part time job.

Cut out all non-essentials for the time being. Eating out, gym memberships, cable television, purchasing your morning cup of coffee, etc. Now take your extra money and one at a time pay off each credit card.

Depending on how much debt you have and how much extra money you can find, this could take a few short months or a year or more. The more disciplined you are the faster you will reach a zero balance.

Once you have accomplished this step, pat yourself on the back, and start over. Using credit cards is a great way to earn rewards, free travel, cash back and so on. As long as you use your card wisely you can stay out of nasty credit card debt and reap the benefits of using plastic.

Continue to make a monthly budget. Begin now, if you choose to use your credit card again. Be careful though. Only charge items on your card that you know for certain you will be able to pay off when the bill arrives. Make sure you have the date marked on your calendar as to when you bill is due and be sure to pay it on time.

Other tips to help you stay out of credit card debt include:

Use only one credit card. It can be tempting to use multiple cards each month, like special store credit cards. Don’t do it. It is too easy to charge more when you are using multiple cards.
Stick with your budget and only charge on your card what you have budgeted for.
Track your spending. Each time you swipe your card, come home and write it down. Many people will keep a spreadsheet of their monthly budget and as they spend in a certain category they will subtract out what they have spent. This is a great way to keep out of debt.
Don’t take out cash advances. This will usually add in other fees and interest as soon as you make the transaction.
Don’t go on vacation or make any other extravagant purchase on your card. That is, unless you have the money in your checking account ready to pay the bill. This is one sure way to get back in over your head.
While most people after getting their debt under control can use their credit card wisely, some still have difficulty. If you are one that is still struggling it may be best to go to paying cash or using a debit card. Then you know you will not be spending money that you don’t have.

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