Credit card bankruptcy happens to Americans more and more often. The economy is in a slump, people are losing jobs and some people are resorting to the use of credit cards to keep food on the table and a roof over their head. Before these people realize it, they are sunk several thousands of  dollars into credit card debt and consider filing bankruptcy as an easy way out. Well with a plan and some determination you can get out of credit card debt while saving your credit.

First you have to come up with a plan. Make your goals quantitative or measurable. If your plan is to stop eating out so much and spend less on shoes, then your goal is not measurable. An example of a measurable goal is “to spend less then $65 a month on eating out and only buy one pair of shoes per month that cost less than $50.

After you set measurable goals and slow down your spending then you should examine all of the places your money is going each month. You subscribe to a service such as NetFlix that you do not use or how about that gym membership that you are paying for but never stepped foot inside the gym since you signed up the day after New Years. Remember all of those small expenses add up to large expenses.

Another tip is to sell off all of the junk that got you into debt in the first place. Take a look at all of the stuff that you purchased. Why did you buy it? Do you still use it? If so how often?  If you can’t justify why you purchased something and you never use it then sell it! Have a yard sale, put it on Craigslist, or sell it on Ebay. Take the money that you make and pay down those cards.

Now that you have some money freed up and have changed your spending habits,  its time to start paying those cards down. Start with the highest interest card and put every Lincoln that you can towards paying that card off. Attack the next highest interest card next. Continue this pattern until all of your cards are paid off. Remember, any money that you free up after a card is paid off needs to go towards the next card. Don’t spend it. Also, while you are paying off one card make the minimum payment on the others for the time being. Don’t try to bite off too big of a chunk at once.

The biggest challenge is to remain determined. Always keep an optimistic outlook on your finances and stay consistent with your strategy. You will soon start to see those financial pounds  shed.