Most often, this will happen if the company does not rely on credit for its normal operation. When a company pays cash for all of the raw materials used in production, the company will have no debts to pay off. However, this means that the company should have a huge starting capital. This is because raw materials cost a lot of money and companies are often unable to pay in cash until the production has begun and they have sold the product made from the raw materials. If you only know how to avoid compounding your balances, you will surely be free from worries such as this. Do not add more to your existing debt. It is best that you only use your credit card for emergency purposes such as you run out of cash and the likes. If you use your credit card on a daily basis, then do not expect that you will be out of trouble. Companies that offer a low minimum balance are just making sure that you will be paying interest for a long time. If you set aside some of your cash to pay more than the minimum balance on your debt, you will ensure that your debt does not increase anymore because of interest. 3) Save what you can - The third part of this debt elimination strategy involves trying to cut back on your expenses. Debt Consolidation: A Fine Debt Elimination Option Paying off bunches of unpaid loans by means of taking another very fresh loan from a bank or any other lending firm is a technique that is known as debt consolidation. Most people who've been through this sort of debt elimination option could say that getting a fresh loan in order to pay for the existing unpaid loans permits some lesser or fixed interest rates on your part. People nowadays live as if debt is an ordinary part of life. Some people might even say that debt is a very useful part of life. In fact, very few people today do not have any form of debt. This is the reason why they wonder whenever some person talks about debt elimination. Why is debt elimination so important? What you need to do is go to different people for help. There are a lot of people whom you can approach for help in credit card debt elimination. There are financial advisory services that can help you with the discipline and the mindset you need to eliminate your debts. Some people will give you advice on how to survive while trying to pay off the credit card companies.