First Step To Reducing Credit Card Debt Is To Stop Using Your Card

It sounds obvious but judging how many people (ab)use their credit cards they seem to forget it: to get out of debt you need to stop getting into more debt. That means putting your credit card on lockdown.

That’s one of ten tips offered by for reducing your credit card debt in 2011:

8. If you have a credit card balance, stop using it for anything other than necessities. If you use cash, you will not only save money on interest, but also reduce the amount you spend. According to a Dun & Bradstreet report, shoppers spend 12% to 18% less when using cash. Credit cards are convenient, but if you carry a balance, you are still paying interest for dinners, clothes, entertainment and things that are long gone.

For some people these means taking it out of the wallet and putting it in a drawer. Others may have to cut up their card entirely or freeze it in ice. Whatever it takes, before you can heal first you have to stop the bleeding.

Ten Tips to Reducing Debt in 2011 [LowCards]

Want more consumer news? Visit our parent organization, Consumer Reports, for the latest on scams, recalls, and other consumer issues.