Skip to content

Getting Out of Credit Card Debt Yourself


To get out of debt may be a daunting task. Truth be told it is,  just as
it probably took months or years of bad financial habits to get into
debt it will probably take the same amount of time to get out.
However, living a financially sound and debt free life is well worth
the effort. Adhere to the following steps if you want to reach this

Switch to cash only – It is simple math: if you spend more than you
take in then you accrue debt. By purchasing with cash only you limit
your spending and you will effectively stop adding to your debt. Put
your credit cards away in a safe place or, if they are too tempting,
cut them up.

Make a budget – Many consumers have no idea where their money is
going. So, for at least one month track your spending. You may start to
see that those small things like ATM fees and the daily coffee habit
start to add up.

Prioritize spending – There are essential expenses (housing, utilities
and food are three big ones) you can’t live without, but there are
also non-essential expenses (cable, multiple phone lines, new car)
that can be reduced or done away with. Separate what you need to pay
for from what you want to pay for. Also, list all your monthly debt
payments including who you pay, how much you owe, and at what interest

Increase cash flow – Simply put, make more or spend less. Look into a
second job or more hours at your first. Have a garage sale or return
purchases that you couldn’t afford. Look through your spending and
decide what you can get rid of or reduce. Switching to a cheaper used
car, dropping the land-line for your cell phone, and using coupons at
the grocery are some possibilities.

Make a new budget, pay off debt, repeat – Using your new income and
expenses, make a budget that leaves you with extra each month for debt
repayment. Pay off the debt with the highest interest rate first, as
that is the debt that costs you the most money. Once that debt is paid
off, make a new budget and payoff the debt with the next highest rate.
Continue until you until you are debt free.

This has been a guest post, written by Monique Rowe who often provides Guest Posts to Paying Paul. I really loved this article, and almost everything she says aligns perfectly with the general financial principles of this website.

Get Out of Debt Money


My name is Derek, and I have my Bachelors Degree in Finance from Grand Valley State University. After graduation, I was not able to find a job that fully utilized my degree, but I still had a passion for Finance! So, I decided to focus my passion in the stock market. I studied Cash Flows, Balance Sheets, and Income Statements, put some money into the market and saw a good return on my investment. As satisfying as this was, I still felt that something was missing. I have a passion for Finance, but I also have a passion for people. If you have a willingness to learn, I will continue to teach.


  1. Monique Rowe’s post is excellent, and if any person reading the post finds himself in a bad credit card debt will understand the reason why he/she is in debt. For those people who are new with credit cards and read this post “it will be an eye opener”.
    I would just like to add this point. Credit card loans are unsecured loans, that means it does not require a collateral.Hence when we do not pay the bills by or before the due date,the interest added to the amount will be the highest. So let us be very cautious to use a credit card.

  2. Very wise counsel indeed! I like the last step: rinse and repeat! 🙂

  3. Great point krantcents! If you don’t know how you got in your situation, chances are, you won’t get out of it.

  4. Switching to cash only is a great tip. We pay cash for many things and everything else with online bill pay. We seldom use our check card and never use our credit card.

    • Good tip Scott. When we were digging ourselves out of debt, we used cash for many things!

  5. Switching to cash only is indeed sound advice. But having a credit card or two is also advantageous albeit it comes with great risks. The key is to have restraint and discipline. Keep spending to the bare minimum and on a need only basis. Payoff these minimal balances each and every month on time and you can avoid interest. Keep a credit card for emergency purposes.

    • If you do not spend any extra, and you pay off the ful balance each month, yes, credit cards make sense. You really have to have discipline though.

  6. The thought of filing a personal bankruptcy case may make you cringe, but it shouldn’t.

Comments are closed for this article!

Related posts