How to pay off your credit card debt

The main mantra that one should adopt when faced with seemingly insurmountable personal credit card debts is "maximise cash inflow, minimise cash outflow". The result of doing so should all then be channelled into paying down your credit card debt.

Maximising cash inflow

1. Work smart in your current job to increase the potential quantum of reward from your employers. This could be in the form of a promotion, an increment, a bonus etc.

2. Monetising your hobbies/talents, whether this is via writing part time for online journals, providing photography services, selling artwork online, trading collectibles (comics, cards, stamps, postcards), or any other variety of money making ventures.

3. Selling things that you no longer need i.e. books, magazines, comic books, toys.

4. Ensuring that you are making timely and accurate expense claims from your company to ensure you are not subsidising the operations of the company inadvertently.

Minimising cash outflow

1. Learn to say no. Whether it is to your nearest and dearest, or to a colleague or a distant acquaintence, it is best that you cut down on social activities, weekend getaways, and outings of any sort that involves money coming out from your wallet. This is especially true if you are the most senior of the lot, or the only guy, and your pride dictates that you either foot the bill before charging others, or (gasp..even worse) giving an all out treat.

2. Look in the mirror and if one of the reason that you have accumulated the mountain of debt is that you spend a huge sum of money on food every month, at the same time putting on excess weight that is pushing you towards obesity, it's time to go on a diet. That way, your wallet grows fatter while you get thinner (and healthier). Some dieting adjustment such as cutting down on sushi, western food like chicken chop, spaghetti or fish & chips, premium priced coffee and beverages, while increasing intake of greens (which always cost less than meat) and sticking to just plain water, is not beyond anybody.

3. Don't buy on impulse. And impulse can last for months! That DSLR camera that you want, and that you keep finding excuses to buy, can wait! It will be a guilt-free purchase if you buy it only AFTER you settle your debts. Rationalise, especially when you are at your weakest and most vulnerable, and when you are faced with various promotions, and friends who are already owning the latest gadgetary. Remember, it's not the equipment that matters, rather the artist behind the equipment that makes the difference.

4. Stop incurring fines. Drive safe on the road. Don't get into fender benders that may set you back a couple of hundred. Don't beat the red light and you don't have to bribe the policeman.