Eliminate Credit Card Debt in the New Year

1. Stop spending

Sounds obvious, doesn't it? But it's amazing how many people worried about debt keep on adding purchases to their credit cards. Folks, it's time to stop. If you have more than one credit card, you need to transfer all of your debt to a single source, such as a consolidation loan, if possible, and cancel those cards. If that's not an option, you should at least cut up those cards so you can't use them.

Keep one credit card for emergencies, but take steps to prevent yourself from using it spontaneously. Freeze it in a glass of water, hide it in your sock drawer, or give it to your mom to hold onto. You can't eliminate credit card debt if you're constantly adding to it.

2. Contact your creditors

If you can't repay your debt as it stands, be honest about that. Creditors want you to repay as much as you can. They do not want to have to send collection agencies after you, and they don't enjoy making negative reports to credit agencies -- because all of that doesn't get them their money back.

If you explain to your creditors that you're working on ways to eliminate credit card debt and sincerely want to make repayments but can't manage your current situation, you'll be shocked how often they willingly work with you to establish a more manageable course of payments.

3. Develop a plan

You can't just wing this stuff: you need a budget, a repayment plan, and maybe even some financial restrictions in place to help you. If you can't do this on your own consider speaking to a financial advisor.

It sounds more complicated than it really is. These simple tips are the keys to help you eliminate credit card debt quickly this year!