W. M. Blake asked:




Be honest – are you one of those people who charged up too much stuff and now you’re trying to find the best way to wipe out credit card debt?

Don’t beat yourself up about it – there are literally hundreds of thousands of people in this country who are in the same boat you are. Heck, I was there myself up until a few years ago (and I was probably in worse shape than you are).

Excessive credit card debt can cause a lot of stress and anxiety, especially at the end of the month when you’re trying to figure out how to make all the payments. Fortunately, getting it paid off is not complicated.

Wiping out credit card debt is a simple process, really. It takes some work, but anyone can do it – no matter how much debt you have.

I have put together a system that explains this process, a system that I call the Debt R.E.D.U.C.T.I.O.N. System. This system uses the following nine steps to get your debt paid off as quickly as possible.

R – REALIZE There’s A Problem

Nothing will happen until you admit that there’s a problem and “realize” that you’re going to have to do something about it.

E – EDUCATE Yourself

Educating yourself about how credit card debt really works is necessary to fully understand how bad it is for your financial health.

D – DECIDE To Get Out Of Debt

Knowing you’re in debt and wishing that it would go away is not the answer. You need to make a conscious decision to do something about it before you’re going to get anywhere.

U – UNDERSTAND What Got You Into Debt

Understanding what got you to where you are now is critical to the system. You need to understand the issues that led to being in debt if you want to avoid having it happen again once you get it all paid off.

C – CREATE A Plan Of Attack

Creating a plan of attack for dealing with your debt makes it a lot easier to manage than just taking shots in the dark, hoping to get it all paid off. What debt to pay off first, how much to pay, how to deal with unexpected expenses – it’s all part of your plan.

T – TAKE Action

Once your plan is laid out, the next step is to take action. If you don’t actually DO something with your plan, you might as well save yourself the time of even making it.

I – INVITE Challenges

Challenges are going to pop up no matter how well you plan for things. Your car breaks down, the roof is leaking, your refrigerator needs to be replaced – these kind of things just have a way of happening at the worst possible time.

O – OVERCOME Obstacles

When obstacles pop up, you need to overcome them without getting derailed from your debt reduction plans. Part of your plan needs to be how to deal with these things when they happen, even if you don’t know exactly what those things are going to be.

N – NEVER Get Into Debt Again

Once your debt is paid off, you need to constantly make an effort not to get back into debt. It’s a little like any other addiction – you might be debt free for several years, but you could slip back into it at any time and you need to be vigilant.

Lauren