I have been debt-free for fourteen months. I prefer to live a life free from credit cards, borrowing money, or paying interest. If you are thinking about getting out debt, congratulations!

Escaping The Credit Card Web

Step 1: Stop using a credit card. I do not use credit cards, period.

Step 2: Pay you credit card minimums, every month, on time.

Step 3: Pay extra towards one specific credit card, either the credit card with the lowest balance or the highest interest rate.

Step 4: Call all credit card companies and ask for reduced interest rates.

Step 5: Consolidate (move debt from one card to another) IF you can get a better rate and you FULLY understand the terms of the balance transfer.

Step 6: Do not get frustrated if Step 4 does not work.

Step 7: Take a few minutes and plug your credit card information into this handy debt repayment calculator. Now that you are moving forward, you can adjust your goal dates and extra payments.

Step 8: Read this book for motivation and advice. Dave Ramsey’s: The Total Money Makeover: A Proven Plan for Financial Fitness (affiliate).

Step 9: Now that you have your basic plan and are moving forward, read this post, detailing (almost) everything I know about debt repayment.

Step 10: Find (or create) a support “network” or “group”. I believe in accountability. I have even created an online network where members can publicly share their progress! (No Credit Needed Network) You need to have (at least) ONE person who can support you, cheer for you, and encourage you. (I believe so strongly in this concept, I started a blog, just to share my journey with the whole world!)

If you enjoyed this article, you may be interested in the latest episode of my podcast, the No Credit Needed Podcast.

Additional resources that helped me to get out of debt include:

YNAB Personal Budget (affiliate)
Dave Ramsey’s Radio Program
Financial Calculators
Personal Finance Blogs