ional amount each month until that card is fully paid off. Keep on working down the list until all credit debt is expunged. From there on convert all your thinking to a cash only basis. If we don't have the money, we don't buy it!

Once you have accomplished repaying all your credit card debt, make sure all the accounts are closed and the cards destroyed. If you want to make significant purchases, plan to finance them having insured that your current budget is capable of handling the additional

Frankly, I detest credit cards but let's face it, we've all got them. If you're not careful they'll end up controlling you unless you decide to control them first. In our experience, credit cards are the single most significant cause of people getting in to a bad credit situation.

So lets grapple with the subject and come up with some do's and don't's.

First, lets take the person with reasonably good credit who has opened some cards and has begun to notice that the cards are becoming a problem. Tough love needed here! Get rid of the problem by canceling the cards and that means advising the credit card company to close the account, you cut up the cards and then follow this plan.

List the cards in descending order by interest rate being charged, listing the high interest rate cards first. Can you afford to repay the most expensive one completely? If you have assets that are liquid and paying you less than the rate being charged on that card, the answer is yes. Do it right away!

Work your way down the list. Leave open any debit bank card that you own and keep it as a convenience. If you don't have one, open one today at the bank you do business with all the time. It will provide you with an audit trail for your tax return and will allow you to maintain a tight grip on your finances and bank account. Additionally, you'll be able to nail any attempt at identity fraud if you watch activity on a daily basis online. Maybe you want to have an American Express or similar card to take care of any emergency travel requirement. Only use that one in a true emergency. As you use this card and pay it by bank transfer immediately your credit history is automatically improving. Some of these cards also have a reward feature to reduce your living expenses.

For the cards that you can't immediately liquidate as described above, calculate how much you can free up each and every month, in addition to your regular minimum payment for the next most expensive card. Pay that additional amount each month until that card is fully paid off. Keep on working down the list until all credit debt is expunged. From there on convert all your thinking to a cash only basis. If we don't have the money, we don't buy it!

Once you have accomplished repaying all your credit card debt, make sure all the accounts are closed and the cards destroyed. If you want to make significant purchases, plan to finance them having insured that your current budget is capable of handling the additional

oblem. Tough love needed here! Get rid of the problem by canceling the cards and that means advising the credit card company to close the account, you cut up the cards and then follow this plan.

List the cards in descending order by interest rate being charged, listing the high interest rate cards first. Can you afford to repay the most expensive one completely? If you have assets that are liquid and paying you less than the rate being charged on that card, the answer is yes. Do it right away!

Work your way down the list. Leave open any debit bank card that you own and keep it as a convenience. If you don't have one, open one today at the bank you do business with all the time. It will provide you with an audit trail for your tax return and will allow you to maintain a tight grip on your finances and bank account. Additionally, you'll be able to nail any attempt at identity fraud if you watch activity on a daily basis online. Maybe you want to have an American Express or similar card to take care of any emergency travel requirement. Only use that one in a true emergency. As you use this card and pay it by bank transfer immediately your credit history is automatically improving. Some of these cards also have a reward feature to reduce your living expenses.

For the cards that you can't immediately liquidate as described above, calculate how much you can free up each and every month, in addition to your regular minimum payment for the next most expensive card. Pay that additional amount each month until that card is fully paid off. Keep on working down the list until all credit debt is expunged. From there on convert all your thinking to a cash only basis. If we don't have the money, we don't buy it!

Once you have accomplished repaying all your credit card debt, make sure all the accounts are closed and the cards destroyed. If you want to make significant purchases, plan to finance them having insured that your current budget is capable of handling the additional

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Work your way down the list. Leave open any debit bank card that you own and keep it as a convenience. If you don't have one, open one today at the bank you do business with all the time. It will provide you with an audit trail for your tax return and will allow you to maintain a tight grip on your finances and bank account. Additionally, you'll be able to nail any attempt at identity fraud if you watch activity on a daily basis online. Maybe you want to have an American Express or similar card to take care of any emergency travel requirement. Only use that one in a true emergency. As you use this card and pay it by bank transfer immediately your credit history is automatically improving. Some of these cards also have a reward feature to reduce your living expenses.

For the cards that you can't immediately liquidate as described above, calculate how much you can free up each and every month, in addition to your regular minimum payment for the next most expensive card. Pay that additional amount each month until that card is fully paid off. Keep on working down the list until all credit debt is expunged. From there on convert all your thinking to a cash only basis. If we don't have the money, we don't buy it!

Once you have accomplished repaying all your credit card debt, make sure all the accounts are closed and the cards destroyed. If you want to make significant purchases, plan to finance them having insured that your current budget is capable of handling the additional

rd to take care of any emergency travel requirement. Only use that one in a true emergency. As you use this card and pay it by bank transfer immediately your credit history is automatically improving. Some of these cards also have a reward feature to reduce your living expenses.

For the cards that you can't immediately liquidate as described above, calculate how much you can free up each and every month, in addition to your regular minimum payment for the next most expensive card. Pay that additional amount each month until that card is fully paid off. Keep on working down the list until all credit debt is expunged. From there on convert all your thinking to a cash only basis. If we don't have the money, we don't buy it!

Once you have accomplished repaying all your credit card debt, make sure all the accounts are closed and the cards destroyed. If you want to make significant purchases, plan to finance them having insured that your current budget is capable of handling the additional

ional amount each month until that card is fully paid off. Keep on working down the list until all credit debt is expunged. From there on convert all your thinking to a cash only basis. If we don't have the money, we don't buy it!

Once you have accomplished repaying all your credit card debt, make sure all the accounts are closed and the cards destroyed. If you want to make significant purchases, plan to finance them having insured that your current budget is capable of handling the additional debt load. Resist impulse buying. When it occurs review it with your partner. If you're single and can't control your spending habits, attend a class in financial management at your local community college and get an education. In the worst case, find a debt counselor and work with them to cure your bad habits.

Be proactive in preventing your credit moving from good to fair to poor and finally to bad. It will cost you a lot of grief and heartache to recover from bad credit. Much better to take the steps now to avoid it in the first place.