What does it take to solve a problem? The first and the most important step is to acknowledge that the problem exists.
If you do not even admit that there might be a problem, you will find it very difficult to solve the same.
Most of us fail to understand that credit cards are designed to facilitate financial indiscipline.
Only a very disciplined person can avoid making impulsive purchases on credit cards.
If you take a look at all those individuals who keep their card debt under control, you will realize that all these persons have faced financial problems in the past.
There are very few individuals who instinctively understand that cards should be treated with respect and caution.
Hence, if you are facing financial problems, you should take steps to bring down the total number of cards you owe.
Simply bringing down the balance without closing the account is not going to work.
There have been innumerable instances where people have repaid the card debt to zero only to discover after six months that they still are facing the problem of excessive card debt.
This is not to say that credit cards are bad.
They simply are not the best tools for ordinary individuals who tend to be very undisciplined when offered lots of money without any restrictions.
Rather than repaying the amount owed to all credit cards, it makes a sense to consolidate the loans into a single own account that can be repaid over a long period of time.
You can set yourself targets that must be achieved before you can even think of getting a credit card again.
If the total amount owed on all your cards ranges around $25,000 and if you bring it down to $20,000 after consolidation, you should avoid credit cards and make use of debit cards until the total loan amount comes down to $7500.
If you can reach this target in just three months, then you can apply for a new credit card after just 3 months.
On the other hand, if you take 10 months, you have no choice but to rely on your debit card for the next 10 months.
You'll be surprised how violently your mind reacts to such a proposal.
You will come out with various scenarios where having a credit card be beneficial.
What if you fall ill? What if somebody dies? What if somebody has an accident? Do not fall for such threats.
Firmly tell yourself that the credit card will enter the house only after your debt problem comes under control.