How to Eliminate Credit Card Debt.

by Steve Dietrich, President, Financial Research Group.

The basics of getting out of debt, including credit card debt, are easy. Not necessarily easy to do, or we wouldn't have an average of almost $16,000 in credit card debt for those who are carrying balances, and 1/3 of Americans wouldn't be carrying $10,000 of nonmortgage debt. But living within your means is doable, even if you have debt now, if you are willing to be brave and address the real issue here -- spending isn't happiness and you can have a lot of fun for free!

So, here are 10 Tips to Get Out of Debt and Enjoy Yourself More at the same time.

1. Only buy what you can pay for at the end of the month with current earnings
2. If you have a balance get rid of it using whatever you need to, other than using assets that would be protected in a bankruptcy
3. Develop a plan to get rid of debt            
4. Substitute other free fun things instead of trying to buy happiness -- library, short trips, reading, exercise, home barbecues, sex.
5. Teach your kids to do more with less. Get your kids into Scouting.  It gives them a lot to do, changes values and teaches them things that may save your life.  
6. Instead of a fancy restaurant go to a nice restaurant that has a nominal or no corkage charge, and take a nice bottle of wine.
7. Consider turning off the TV, off with the smart phones and give each other a pre dinner foot massage with wine and quiet. If you have the cash flow, and you are pretty sure you are not moving in the near future, look at refinancing your house at today's low rates. DO NOT ROLL YOUR CREDIT CARD DEBT INTO YOUR HOME LOAN UNLESS YOU ARE ABSOLUTELY COMMITTED TO CHANGING YOUR WAYS AND HAVE PROVEN THAT YOU CAN DO IT.    
8. Consider the option of taking a shorter loan term (fully amortized) on your home, as you will get a lower interest rate and your home will be free and clear sooner.  Even if you sell in 5 years the marginal yield on the extra payment is substantial (based on a .5% spread between 15 year and 30 year fixed rates).
9. There are two important differences between owing money to your credit card company and owing it to the mafia.  The mafia is more understanding and their rates to people who are bad credit risks are usually better.
10. If you will be unable to pay the bill at the end of the month, do not put anything further on the charge.
11. Treat yourself to good things, but not wasteful things.

This plan preserves the essentials of life -- good wine, food friends, sex and intellectual stimulation. None of those can or should be put on credit! They should be enjoyed here and now -- for free, whenever possible.

For details on how to eliminate debt forever and to get your questions answered, join Steve Dietrich in Natalie Pace's call-in radio show on Tuesday, February 21, 2012 at 9:00 a.m. Pt. Call-in number is: (347) 215-7305.

About Steve Dietrich
Steve Dietrich is the co-founder and  president of Financial Research Group, a 30+ year old Southern California based real estate development and consulting firm. He is a former Guest Lecturer at the Anderson Graduate School of Business at UCLA, where he created and taught the school's course in Entrepreneurial Real Estate Development.