Ending The Not So Merry-Go-Round Of Credit Card Debt

Do you wake up at 3:00 a.m., worrying about howWhat's the scary total? Don't pass out; congratulate
you're going to pay your bills? Or maybe you're notyourself. Because you've moved to cash-only
paying your bills at all. Maybe you're just shuffling thempurchases, you've just subtracted that amount from
around-paying one debt by creating another-usuallymonthly mounting debt. See how much free cash
using a credit card (or four, or five, or six of them) toyou've suddenly discovered?
bail you out. A bit of a merry-go-round, isn't it. But yourNow. Make a list of every debt you have, credit cards,
life does not have to be that way. There arein-store accounts, rent-to-own agreements, you name
alternatives to the nightmare of ongoing credit cardit. List every one of them. List the highest interest
debt. So you can get a good night's sleep.debts first. Those are the ones you're going to pay off
First things first. Take out your credit cards. Do it withfirst, using the money you're no longer spending on
your partner or spouse, if they've got cards too. Evenoverdrafts and exceeding your credit card limit. See
get the kids in on it. Make it a family challenge. Then,how that works?
cut every card up. Yup. Gulp. Take a deep breath, andStill not enough?
just do it. Including, by the way, your debit or cash card.Consider your assets. If your debt is that bad, you
From here on in, you're paying with real green andneed fast action. Think about using your car, or truck,
green alone (that's the colour of cash, by the way, ifor whatever you drive, to get a car title loan. It can help
you've forgotten) for every purchase you make.you get a jump on those bad credit cards, and help
Next step. Go through every credit card bill, and everyyou get your debt repayment under control. Instead of
bank statement, and add up only these fees for thepaying high interest rates on three, or four, or more
past 30 days:credit cards, you can pay one easy monthly installment.
1. How much have you been charged just forRight now maybe your credit is so bad you think you
exceeding your credit card limit-not the interest you'recouldn't even qualify for a car title loan. But that's the
also being charged-on every card you carry (youbest part. A car title loan is especially developed for
know you're over on every one of them)people like you with bad credit, low credit scores, or
2. How much have you been charged for exceedingeven bankruptcy. It works because you use your car-if
your chequing account limit-that is, drawing on theit's less than eight years old and you own it-as
overdraft (or is your credit so bad, your cheques arecollateral against the money you borrow.
just flat-out bouncing-then add up those charges)And, because you've qualified for a loan, and make
3. How much has the bank charged you for exceedingregular payments, it can help you improve your credit
your allotted number of debit card withdrawals thisscore, and get you back on the very merry-go-round
month ('cause you know you use that baby like there'sof good credit. And back to sleep at night.
no tomorrow).