How To Get Rid of Credit Card Debt

How to get rid of credit card debt is a big problem for many people. You can dig yourself into a real hole if you have a high balance and you only pay the minimum.  After one week count how many credit card offers you have in your mailbox. Probably too many.

This is how the banks operate, they lure you in with enticing offers that you think are a great deal. Except one day you check your credit card balance and you’ve accumulated debt upto your eyebrows.

Here are some suggestions on how to get out of credit card debt.

First you need to assess what your credit card debt looks like. What is the balance and how many cards do you have with a balance.

Take a look at what interest rates you are being charged for each card you have and put them in order of highest interest first, then second highest and so on.  It’s best to pay off the card with the highest interest rate first with at least 2-3-4-5-6 times the minimum payment. If you can pay more do it.

You will see your finance charges starting to get reduced much faster than just paying the minimum. It can sometimes feel like a daunting step but know that if you keep to your credit card payment plan you will soon see light at the end of the tunnel.

You can look into credit card debt elimination plans or programs. There are services run by credit card consolidation companies that will advise you on how to consolidate credit card debt. You may be charged a fee if you decide to go this route. It’s best to research the services at hand just to be safe.

One way to help you start to eliminate credit card debt is to call your credit card company and request a lower interest rate on all your credit balances. If they say no, ask to speak to their manager. It doesn’t hurt to ask and you may be pleasantly surprised. You can also transfer to another credit card that has a lower interest rate or even a 0% interest rate for a six-month period of time. If they lower your interest rate you benefit and continue making the same amount of payments as before.

Make sure you list each and every card with balance and int. rate in a “credit card debt” notebook. You will then mark down every single payment amount you make with date and next to your balance for each card write down what the minimum amount is so you can see how many more times than the minimum you are actually paying.  Next, put a smiley face next to each payment you make. Hey, the fact is you have to pay off debt either way so you might as well pay it off with a smile and a positive attitude as opposed to a negative one. This will also help your stress level too.

Make a game of it – set a goal for 6, 12 or more months and see how much your credit card balance has been reduced since keeping track when you first started making payments.  After 3-6 months of following this plan, call your credit card company again and request a lower interest rate. You have nothing to lose by asking.

Celebrate the difference and continue on! You will soon be seeing credit card debt relief and the lower your credit card balance goes the better off you will be.

This isn’t a sprint but a marathon so don’t get anxious. Now you have a plan of action that you can follow and getting out of debt is your top priority. Remember, you are in control of how to get rid of credit card debt, not the other way around.

Paying Off Your Credit Card Debt
Famous financial adviser Suze Orman says there are three steps to paying off your credit card debt.