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7 Winning Ways To Conquer Your Debt

If you will follow a few simple steps, you can conquer your credit card debt. It takes patience, commitment and persistence and it will pay off financially and emotionally for you.

1. Cut unnecessary spending—Eliminate non-essential expenses. Cutbacks could include packing your lunch instead of eating out, skipping the latte at your coffee break, or delaying big-ticket purchases.

2. Know what you owe—In order to get control of your debt, you have to know how much you owe. Find a quiet time to make a list of what you owe on each credit card, the interest rates, monthly minimums, and credit limits on each card.

Here is a chart that you can fill out to help you organize your information:

3. Make your game plan—Set a long-term goal to pay off your debt in three years, for example. Then divide the goal into steps you can take to achieve it.

4. Track your spending—Keep records of all your expenses, large and small. Total them monthly by category and look for more ways to save money.

5. Pay off your highest interest rate cards first—Consider using some or all of your cash savings to reduce your debt. You can use your credit card for a cash advance in a dire emergency until you get yourself out of debt.

6. Always pay more than the minimum—This action can be a critical step in getting out of debt. If you pay only the minimum due on your credit card each month, it will take you a long time to pay off your balance.

7. Celebrate success—Figure out what will keep you motivated to stay on your new spending plan. Think about sharing your goals with a friend for moral support. Find a fun way to celebrate each milestone along the way.

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