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How to Get out of Credit Card Debt Using Self-Help Techniques and Positive Thinking

Debt induced stress is one of the most problematic plagues that weaken both the mind and body of those it affects. Managing a busy life, keeping a family together, dealing with inherent health problems all these are things that can become quite overwhelming. When we add the constant stress created by being in debt, the feeling that everything you own is in danger of being lost, anxiety, depression and chronic stress are often experienced. Credit cards are of course, a useful and benefic economical element, a tool that helps us make our lives easier and more convenient. But they do come with a price tag that is often neglected – the interest rates and the freedom to buy without any limits are often too tempting, and many people end up owing large amounts of money to their creditors.

Debt related stress and anxiety

The repeated notices, calls and visits from your creditors remind you just how stringent your problem really is. However, you can use anxiety in your favor, once you learn how to master it. Letting it dominate your every move and combining it with depression is the exact opposite of finding a solution to your financial difficulties. But stop for a second and examine your anxiety, try to see beyond the immediate effects it has on you. You will notice that anxiety and aggravated credit card debt related stress have an irrational side that is completely blown out of proportion by our own minds. Many self help techniques recommend escaping anxiety by transposing your mind into a different reality. From one perspective, this works, since it gives you the peace and quiet you need to gather your energies and channel them towards achieving your goal and paying off the debt. However, there are many who never want to return to their own reality and prefer to stay hidden in the imagined universe and this will soon turn into a completely detrimental factor in their lives.

Turning anxiety into an ally

The opposite method is to accept your fears and see them as a whole. Dont try to avoid the situation, dont shift blame on others. Rationalize the reality around you, see why your credit card problems escalated and brainstorm for ideas on how to solve them. If you run away, they will only grow stronger. Jot down a few ideas and consult with your friends or family, as well as with financial advisors. There are always solutions of getting out of credit card debt, but more than often you will have to invest some energy in finding the one that is perfect for your individual case. The moment when you feel your stress levels reach their peak, when your debt related anxiety seems to be close to bursting, you should put your foot down and start walking your way, the rational way – the “getting out of debt way”.

Affirmations and positive thinking

One of the characteristics we all share is the impression that, at certain points during our lives, we are completely helpless. Thats not true and self pity is an immobilizing and energy draining disease. Positive thinking is the best medicine against such negative thoughts. It uses affirmations – phrases that define your personality or actions, phrases that you repeat over and over so that your mind can use them as weapons against self pity, low self esteem and anxiety. Repeating the affirmations turns them into beliefs and they become reality, not just some nice words that you would like to associate to yourself. Our beliefs are flexible and we can change them. “Im never going to repay my credit card debt” is often some of the phrases you hear from those who are having financial problems. This negative thought, repeated, out loud or in their minds, becomes their belief, and their actions are doomed to fail. If the same person were to say “I WILL repay my debt” – and complement this saying with the appropriate actions, such as better finance management, a more economical life style and so on – he or she would turn the tide in their favor. Try to set a few goals for yourself and turn them into short but symbolic affirmations, which you will then repeat as often as possible. Correlate your thoughts and actions and you will soon start seeing the first signs of success.

Credit card debt can be a major source of stress and anxiety in a person’s life. Unfortunately, it’s all too easy to spend the money but when you’re faced with having to pay those cards off, it’s a whole different matter.

If you’ve looked into debt reduction, you may have heard of something called the “snowball” method. This is an effective way of dealing with the debt on your credit cards, that has worked for many people.

The first step in the snowball method is to write down all the balances on your credit cards, their interest rates and the minimum payments on each.

Add up all the minimum payments – and all your other monthly payments – and decide how much extra you have left to pay towards your credit card balances.

Now take the card with the lowest balance and add that extra payment to the minimum payment. Do this each month until you have paid that card off.

When the first card is paid off, take the amount of the payments you were making on it and add it to the minimum payment on the remaining card with the lowest balance. Again, make this extra payment every month until that card is paid off.

Keep doing this for the lowest balance card each month until all your credit cards are paid off. It’s surprising how quickly the payments can snowball (hence, the name) after you have paid a couple of credit cards off.

Some people prefer to pay off the highest interest rate cards first, since that will save more interest in the long run. There’s no reason you can’t do it this way but many people find it more motivating to see cards get paid off quicker.

Whichever method you use is up to you. The key is to stick with the plan every month until all your cards are paid, and resist the temptation to use the cards once they’re paid off.

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The relationship between stress and credit card debt is a very close and, unfortunately, widespread one. A Public Interest Research Group and Consumer Federation of America analysis of accurate Federal Reserve reveals some astounding figures: the average household has debt ranging between $10,000 to $12,000 and the average number of credit cards is nine. Such statistics are representative for several other countries, besides the US, such as the UK, Canada or Australia. The convenience of using credit cards is the same everywhere, and the psychology of the human society is relatively identical. We all want to own more than we can afford and, at the moment we reach a certain social status or level, we aim for the next and so on. This race also has its victims and they are numerous. Credit card debt is a very frequent problem and many therapists and medical staff have to attribute severe cases of depression, stress and anxiety to debt related triggers.

The crisis that develops stress

One of the most important human values is that of equilibrium, stability. Combined with the desire to feel protected and safe, the need for stability dominates our lives in adulthood. Being in debt is a strong negative factor that disrupts the balance we desire. Not only do we have to give back a lot of money, we are also in the danger of loosing what we already own. People going through prolonged periods of being in debt start developing different aspects that ultimately lead to serious medical conditions.

Depression is one of the most frequent problems related to credit card debt, combined with a feeling of being incapacitated to solve the problem. The crisis that triggers the life ruining stress may often develop throughout time, taking baby steps and creeping up on you. By the time you realize how big the problem is, there are relatively few solutions that you can take. The crisis may occur because of poor financial planning, living a life style that is beyond your financial possibilities or simply because of an emergency that drained all of your financial resources.

Tips on avoiding stress and preventing credit card debt

The difficulty of stopping a certain spending pattern is huge, and many people resort to extreme measures, such as cutting up their credit cards in order to freeze their spending. Paying the minimum monthly balance is also extremely tempting and many fail to realize that with each passing month their debt grows substantially due to the credit cards interest rates. Here are a few ideas that will help you diminish your credit card debt or stop it from appearing in the first place:

Stop unnecessary spending dont consider your credit card a loan, as this will disrupt the balance of your lifestyle and you will spend well above what you can repay. Try to plan ahead and never spend above the determined monthly amount.

Plan your budget examine your past spending habits and adjust them. The best way to eliminate credit card related stress is to be in complete control of your finances. When you know exactly how much you can spend, you will undoubtedly set some more realistic goals for your money and your spending will be more rational, rather than emotional.

Plan ahead for large investments dont use your credit card to pay for larger investments, such as a car or home improvements. Also keep in mind, when taking a mortgage or car loan that your debt will increase correspondingly. Its hard to believe that you will be able to avoid credit card debt if you take out a large loan and also continue to spend money just like before the loan.

Dont pay one credit card debt with another credit card theres not a lot more to say here, except that medium and long term solutions such as this will most likely lead to bankruptcy, as the interest rates are too high to recover.

Less is more do you really need 9 different credit cards? Are the points and reward systems offered on some so attractive and useful? Most financial consultants recommend using one or two credit cards, as this makes perfect sense for better finance management. The more cards you have to manage, the more stress you will bring upon yourself.