If you are like many of the thousands of folks out there who have more month at the end of your money, then you know how easy it is to rely on your credit cards for every day purchases. Many folks use their credit cards as if they were cash; not just for items that they cannot afford, but for groceries and utility bills. When you use your credit card, you should have the mindset that if a bill collector would come knocking, that you would be able to pay off that whole debt without any worry or concerns. And if you don’t pay your bill every single month, then you can be sure that the bill collectors will come knocking and calling! Debt collectors and their agencies are getting worse as time goes by, even though there is federal legislation preventing them from abusing people just like you.

If you want to become debt free and financially independent, then you need to put those credit cards on ice and sit down and figure out a budget! Many people don’t know how to do that, but you are lucky since we will be able to give you options that you may not have had before! Here are a just a few points on how to reduce credit card debt, there are plenty more where these came from too so you have no excuses.

Limit Your Use Of Credit Cards

You can limit your use of credit cards by cutting yourself off completely. Close all of your revolving debt accounts now. All you have to do is call the 800 number on the back of your card and tell them that you want to close your account. One of the benefits of this is that you can lock in your current interest rate without having to worry about rates going up in the future. You can even negotiate a lower interest rate if you want to.

Cut Up Your Credit Cards!

Another way that you can stop using your credit cards is by cutting them up. Get a pair of scissors or use your paper shredder at work to help you get rid of that pesky plastic. Once your card is destroyed, there is no way you can use it. In the event that you do not have an industrial shredder, do not use your personal one. Scissors work just as well. Cut that card up into as many small pieces as you can. This will prevent the possibility that a con artist will get their hands on your card number and make fraudulent charges with your account.

Freeze Your Cards Literally!

If you don’t want to shred your cards or even call to close your account, then you can always put your card on ice, literally. Put your card in a plastic bag filled with water and put it in the freezer. It you really want to buy an item, then you will have to wait for your credit card to thaw to be able to take it out and use it. This will give you that all important time to think about what you are really doing. Warning, we can’t promise this won’t damage the card but that could be a good thing right?! At the very least you can ring your bank and get another sent out. By the time that happens perhaps you’ve realised that you don’t really need that new pair of high heels after all.

Get A Grip On The Reality Of Your Credit Card Debt!

Maybe you are one of those folks who does not see the harm in using your credit cards for day to day living expenses. Well, then think about this. Have you ever looked at the interest that you pay on a yearly basis for those items? Sometimes it is more than the price of the original item if you had just used cash! Also, have you actually calculated how long it will take you to pay off your credit card? If you only pay the minimum every single month, then it could take you up to 20 years to pay it off! Most people don’t take into account “revolving” debt. You are paying interest on the average daily balance and it is not a fixed amount so it changes every single month! You are getting poorer and the credit card company is getting richer!

We’ve covered a few ways on how to reduce credit card debt, a budget is important too though! Credit cards might seem like an easy option when times get tough, but they can put you in a worse situation if you do not treat them with caution. Look at the interest that you pay on a yearly basis and ask yourself if you would like to have that money in your pocket versus the big ticket item that you really want to buy. Save the amount that you would pay as a bill payment and purchase the item with cash! You will be happier that you did! Credit cards are great for an emergency situation, but they are not an available source of funds like people treat them. Save yourself heartache and worry in the future by making smart choices when it comes to using your credit cards.