Are you in credit card debt and need help?  Many people spend money today based on projected future earnings rather than based on their current personal finances, and find themselves in need of help with their money and credit card debt.  There is, however, a problem in doing that.  Nobody knows the future, or what their personal finances will look like a year or two down the line. 

I had a call today from a gentleman desperate and in debt.  He is making $30,000 a year, but owes $78,000 in credit card debt.  Out of his own mouth he said, "I was doing good financially in the 1990s, but I kept spending believing I would do well again in the future."  That's a not a good idea.  Spending money without saving money and incurring debt without a good, practical money management plan is a bad idea.  Bad health, divorce, job loss...all can be in your future and have a tremendous influence on your personal finances.  My philosophy is to live everyday as if you are a "temporary employee."  If you know a job is temporary, hopefully you will be saving money in case there is a time of famine.

When people spend money based on their potential future earnings, instead of based on their current financial reality, I call that "banking on your future with credit."  Now, if you were banking on your future with real cash that is another story.  However, most people are using credit cards to finance their tomorrow.  So how do you stop the debt cycle and achieve complete debt elimination?  Many long to live debt free but do not know how to manage their money and eliminate their debt. 

These tips should help bring you closer to financial freedom:

Talk to someone

When you are in the "eye of the debt storm," it is hard to get clarity or to see possible options.  Many people who need help with debt don't know where or who to turn to.  Talk to a family member, friend, or like the gentleman who called me, a financial coach.  When I asked him what gifts and resources he currently had in his hand to eliminate his credit card debt, he discovered there were many.

Cut up credit cards

Get rid of your credit cards.  This is an important step to debt free living.  Maybe keep one of your credit cards for emergencies, but use self-control and stick to a set spending plan.  Why keep the very thing around that is causing you pain and keeping you from financial freedom.  Close your charge accounts and stop using credit, especially credit cards.

Call your creditors

Let your creditors know your situation.  Try to work out a payment plan.  Avoiding the creditors and not paying your current debt, will lead to more monthly late fees, higher interest rates, and even judgments

Lower your credit card limit

If you must have a credit card, lower the limit to around $500 or $1000.  This limit is something that is doable as far as paying off goes. Decline any credit limit increases, and practice continued discipline.  Self-control in handling your money is crucial to not only saving money, but also to debt elimination and achieving financial freedom.

Set spending rules

Many people think that it is impossible to live on cash not credit, but that is simply untrue.  Set spending guidelines in such a way that you make sure to stay within certain perimeters.  This is where a spending plan comes in.  Try to keep your debt down to less than 15% of your take home pay.  For example, if you bring home $4,000 a month your debt should not be more than $600 a month.  I'm talking car payment, credit cards, department stores, and student loans.  Keep credit spending low; try to pay cash.  Living on cash instead of credit will bring you closer to living debt free.

Stop using credit to finance the future that you believe you deserve.  Start living your life based on your needs.  Realize the things you want are actually a privilege, not a right.  Are your wants causing you to lose sleep at night?  Listen, no one knows what the future holds, so stop creating debt by banking on yours. 

Sharman Lawson is a financial coach, speaker, and author of the book 12 Steps to Eliminate Debt Forever!   Visit her website at www.sharmanlawson.com.