Life of an Investor

How to Get out of Credit Card Debt

I know that there are a lot of people who get into credit card or other debt in order to fund their investments in real estate. I also know that many hold a high balance on credit cards while they continue to invest in stocks or other investments. While I definitely understand the power of investing, I also understand the negative power of certain kinds of debt.

Jason, over at Frugal Dad has a great post today about getting out of credit card debt and staying out. Check out his 7 steps for a guaranteed way to pay off those cards as soon as possible. I especially like step #1:

Stop charging. This one seems so obvious I almost didn’t include it. Unfortunately, it is the one people usually fail to do with any conviction. The first step out of any hole is to stop digging. Only then can you begin to devise a plan to crawl out. This step may require you chopping up your cards with a pair of scissors (keep one for emergencies), or at a minimum taking them out of your wallet and leaving them in a sock drawer at home. Whatever you have to do, stop making new charges.