gold dollarThe Inside Out Credit Card Debt Management Plan

Here is a simple do-it-yourself debt management plan. Credit card debt management questions often arise when high levels of debt begin to overwhelm the cardholder. This may be due to changes in the economy, personal problems or simply excessive spending.

This high debt is likely spread out over three or more cards. With several thousand dollars of debt carried on Visa, Discover card and several MasterCards, the ugly truth settles in as the monthly onslaught of bills comes pouring in.

Each company is requiring a minimum payment just to pay the interest (and maybe a very small drop of your debt). You feel overwhelmed. You pay the bills monthly, but that mountain of debt never seems to get smaller. The reality is the system is NOT designed to reduce your debt!

The credit industry sends us a cruel mixed message. If you have high credit card debt, your credit rating drops. Yet, even though you may have too much debt, the credit card companies usually keep raising your credit ceiling and send more credit card offers, luring you into more debt.

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Instinct usually kicks in at this point and you open new accounts from their attractive 'teaser offers' that provide zero interest rates for a few months after which, you are left with yet another bill.

Credit Card Debt Management Plan - Using The Inside Out Approach

To use this debt management plan, you need to think with your head. This is not a time to panic nor is it a time to let your emotions control the situation. Here is the simple plan:

1. Stop taking out more credit cards! If you don't, you are giving yet another credit card company access to your money.

2.Use their short term 'teaser offers' wisely and to your advantage. If one of your existing credit card companies offers you a zero percent deal for a few months, take it but only transfer a small amount to that account. Focus on paying off that transferred amount. 100% of your payment will go towards the principle owing, which is the fastest way out of debt.

3. Pick a credit card any credit card and pay it off. It could be the card with the lowest balance. If you pay that card off, it's one less bill coming in every month and you will have a sense of accomplishment knowing you just killed off one of the credit monsters lurking in your home.

The Cornerstone of This Credit Card Debt Management Plan

Make just the minimum payment on the highest interest rated cards you have. Then put your excess funds towards paying off a card with a smaller balance. You are getting the biggest bang for your buck with the money you have available to pay down your credit cards.

Your credit card debt will shrink more quickly and allow you to attack the larger balances as well. Using a smart, logical debt management plan, you take control of the credit card debt problem knowing that it will soon disappear.

This inside out approach to paying down your credit card debt is simple and gives you a debt management plan to ultimately achieve financial freedom.

checkmark bulletNote:   The Federal Trade Commission (FTC)has set up an information page: "For People on Debt Management Plans: A Must-Do List". If you are with a DMP, or are considering one, read this report to familiarize yourself with the laws and potential problems you could face.

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All the perplexities, confusion and distress in America rise, not from defects in their Constitution or Confederation, not from want of honor or virtue, so much as from downright ignorance of the nature of coin, credit and circulation. ~ John Adams, in a letter to Thomas Jefferson in 1787


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To achieve financial freedom, ideas such as: listening to good advice, learning how to make a budget, understanding credit repair possibilities, avoiding the scams, and generally becoming more knowledgeable of the credit card business, can all play a role in eliminating credit card and other debt. A smarter way to manage your money.


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