How to get out of credit card debt

© Elzbieta Sekowska Analyzing tax assessment and credit card statement
© Elzbieta Sekowska

It’s all too easy to get into debt, but reducing the burden takes many months or years. You can get out of credit card debt far more quickly, but it requires considerable self control and discipline. That means that you’ve got to reduce your spending, boost your income and possibly make regular payments into a debt relief program.

Pay Down Debt Faster by Reducing Your Spending

The first step towards getting out of credit card debt is documenting all sources of expenditure in a spreadsheet. This enables you to see where your money is going so that you can make the necessary spending adjustments. For example, you can save money by switching from branded to generic groceries, reducing your social spending or refinancing your home mortgage.

Make Extra Cash to Reduce Your Credit Card Debt

It’s easier to save money than to make money, but you should look for ways to earn some additional cash.

See if you can work overtime or find a part-time job that fits around your family commitments. Think outside of the box and use one of your talents, such as teaching music. The extra disposable income could dramatically reduce your debt burden.

Eliminate Credit Card Debt with a Debt Relief Solutions

A debt settlement program is widely regarded as the main alternative to bankruptcy. A professional negotiator liaises with your creditors in order to write-off up to 50% of your unsecured credit obligations and improve the terms of repayment. You’ll typically repay the remaining balance over a period of up to 3 years.

Unless you’re insolvent at the time you enter a debt solution, you should seek advice from a tax expert. This is because the Internal Revenue Service (IRS) treats any credit that’s been written-off as a form of taxable indebtedness income. This is an important consideration when entering a debt-free plan.