The Secret of How to Get Rid of Credit Card Debt Using Ancient Chinese Wisdom

How to get rid of credit card debt? That is the number one question you must ask yourself if you have no wish to join the millions filing for bankruptcy every year. Once you get careless in managing your credit card debt, the next thing you know you are facing the threat of bankruptcy.

Fortunately, help is at hand to deal with the problem. Would you believe that the secret is actually in the form of an ancient Chinese saying? Yes, a saying that goes "Know yourself, know your enemy, win the battle, every time."

Here is the step-by-step plan on how to get rid of credit card debt drawing from the wisdom of this old Chinese saying.

1. Know Yourself - Draw Up A Budget

The quickest way to know about your money situation is to draw up a budget. Many people get scared off with a vivid image of accountants churning out figures after figures the moment they hear the word "budget". The fact is, a budget is nothing more than a plan to tell you how much you earn and how much you spend.

A simple budget is all you need for our purpose here. First, identify the various sources of your monthly income such as salary and rental income. Next, write down your monthly expenses like food, utilities and clothing. Lastly, deduct the expenses from the incomes, and you will find out how much you overspend or have left over every month.

2. Know Your Enemy - Assess the Debt

The credit card debt is your enemy. Be realistic when evaluating and analyzing how deeply you are in debt. Calculate exactly how much you owe on each and every credit card you own.

Do not stop there. Read the fine print of the credit cards to find out how you end up with those debts. You want to know how the credit card companies charge the interests, what are the annual percentage rates they use, whether they slap any other penalties and so on.

3. Win the Battle - Reduce the Debt

Know yourself, know your enemy. The efforts you put into the first two steps will reward you when it comes to the battle against the debt. They give you a better picture of your cash flow and debt. You are now ready to go into battle to eliminate the credit card debt.

There are many ways to go about doing this. So much so that deciding whether debt negotiation or debt consolidation is the suitable one can be daunting. Once you get this part right though, how to get rid of credit card debt will be no more a problem. To win the battle against the credit card debt, you must choose the right strategy.