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There are many attractions and advantages to using credit cards. They benefit the individual using the card, the merchants doing the selling and the financial institutions that control the credit system. So, since they benefit everyone they have become all pervasive and easy to get. To this extent, most people have at least one credit card in their wallet or bag. However, there is often a cost when things are too easy and in this case it means debt. People that don’t manage their finances well can easily fall into large amounts of debt. This article will cover how to eliminate credit card debt without bankruptcy. Credit card debt occurs on two fronts. People over extend themselves by buying stuff on credit when they don’t have the money to pay for it. They voluntarily go into debt. Then they fail to pay off the monthly interest charges on this debt. This increases the overall cost of the items they bought and makes the debt even larger. There comes a point when they realize they are in a bit of a spot. As the saying goes, they have dug themselves into a big hole and the only way out is to stop digging. In terms of credit card debt, setting up a budget is the best way to stop digging. It might not be the most interesting thing to do but setting a budget can keep you on top of your financial affairs. It gives you information that helps you to make better financial decisions. So, a budget is simple. Subtract the amount of money that you spend each month from the amount of money that you earn each month. You want this to be a positive number. If it isn’t then you have to start making some changes to your spending habits. Work out how much you spend on essential items. These are rent or mortgage payments, car payments or commuting/public transport costs, utility bills, grocery bills. Basically, you need shelter, you need to eat and you need to work to earn money. All these things are essential. Take the total cost of these items away from your monthly income. What you have left over is money you can spend. If you have any debts, be they credit cards or otherwise, then this surplus money should go towards paying off the debt. You might not be able to give much initially but it’s a start and by sticking to it the debt will come down. The money can also be used to indulge you shopping lust but don’t go into debt to satisfy this need. A budget is about knowing how to live within your means. Having this kind of information available to you is invaluable because you know what you can and cannot afford. However, setting a budget is just the start. You must show discipline to stay on budget each and ever month until your debt is cleared. This might mean going without your favorite cd or gadget but you must avoid the temptation. And if it is still hard to avoid the temptations of using plastic then think about getting debit card, that only works when you have cash in the bank.