It is easy to see how credit card debt can become a problem. Credit cards are accepted virtually everywhere, and they are very convenient to use when making a purchase. With credit cards there is no need to fumble around your wallet or purse searching for dollars and coins. The problem is when you receive your credit card statement at the end of the month, and you do not have the funds to pay it off completely. It is funny how the amount owed always seems to be more than you remember charging. Unless you faithfully deduct each of your charges from your checking or savings account balance you may end up charging more than you can pay for. The result is often to make a payment that is less than the full statement balance. Of course, this incurs a carryover of what was not paid, to next the month billing cycle, and the dreaded interest charges begin to incur.

The best and fastest way to stop the credit card debt cycle is of course to not use your credit card. Try putting your credit card away and only use cash for purchases until your credit card is completely paid off. This strategy could prevent you from becoming swallowed up in debt while also helping you to spend less. Numerous studies have shown that consumers are willing to pay more for an item when they are using a credit card instead of cash. For most, swiping or entering the numbers from a credit card requires little thought compared to counting out cold, hard cash.

At first, it may feel a little uncomfortable and less convenient to only use cash; however, that is why this strategy can work well. It is more difficult to make cash purchases and consequently you should spend less. But what about online shopping? You could use PayPal, or other payment services such as Venmo, which deduct money directly from your checking or savings account.

Do not make the mistake of using another credit card and thinking you will pay both credit cards off at the end of the 30-day card cycle. Using another credit card will most likely result in accumulating more debt by having another credit card balance you cannot pay off. This is how credit card debt can become a big problem.

If you do find yourself with multiple credit card balance’s you will have two basic options to pay them off. Either pay off the credit card with the highest interest rate first or the one with the lowest amount owed. To help you decide which option is best for you, think about whether you would rather save money on interest, or eliminate the entire credit card balance quickly. Which ever option you decide, be sure to stick with it until all your balances are paid off.