Learn how to overcome the shame often associated with credit card debt so you can take action to improve your financial situation.
Assess your situation
Evaluate your financial behavior so you can understand why you are in this situation. If you do not have a good understanding of how to manage your finances, you may have trouble getting them under control and keeping them there. Take inventory of your income and spending habits. Make a budget that only includes your necessary monthly expenses. You should detail any miscellaneous expenditures on a separate list. Once you can account for every single penny, you can start planning your way out of debt.
Make a plan
It can be hard to eliminate a lot of credit debt if you do not have a plan in place to keep you on track. Make a list of each credit card you have, the amount you owe on it, and the minimum payment amount. Arrange the list so that the cards with the highest balances are at the bottom. You should work on paying the cards with the smallest balances off first. You still need to pay the minimum on the cards that have higher balances so you do not fall any further behind.
Contact creditors to make arrangements
If any of your cards are seriously delinquent or in collections, you should contact the creditors to make payment arrangements. Many creditors and collection agencies are willing to make arrangements to receive some kind of payment instead of not receiving any payments at all. If your creditors are unwilling to work out payment plans that accommodate your current financial situation, you may need to consider other options like debt consolidation and bankruptcy.
It is important for you to keep your emotions from taking over when you look at your bills and think about your financial situation. If you are having trouble with your bills and feel there is no end in sight, you should speak to an attorney about your situation for guidance.
