What is the best way to get out of credit card debt?

Whether you utilize a software program on the computer or the old fashioned pen and paper, begin by making a list of all the credit cards that you currently have. Include in this inventory the interest charged and also the balance, and other details like the number of days in the grace period and similar facts like how long you have been a customer et cetera.

I think the most important aspect of freeing yourself from debt is getting out of denial about exactly how much you owe and how many different companies are making sometimes exhorbitant profits from your need to "borrow" money or your lack of impulse control which fuels the credit card debt.

The next step that I would take is to decide which one major credit card to keep and perhaps one other credit card (specialty card such as a gas card). A main factor I would use in determining the one major credit card to keep would be the terms and the company's willingness to "keep my business" If you have been a customer for a lengthy period of time, call the company and negotiate a better interest rate for your purchases. If you have been a customer in good standing or if you mention during your call that you have an offer from another company to consolidate or transfer your balances, there are definitely good odds that the credit card company will offer an incentive (often a reduction in interest) to keep you as a customer. So play the major card company's against each other to get the "best bang for the buck".

Then, after you look at the list and make your decision on one major and one minor I would cut your cards. Physically cut them into two portions so that they are no longer usable. Another suggestion I read once is to put them all together in a huge container of water and freeze them so that you must really consider whether or not you want to use them before the ice melts. For me the act of cutting them or burning them was significant in reinforcing my intention to escape debt.

Another tip is to look at your other sources of financing this debt. For example, you may own your home and have built up equity. If this is the case you might talk with a mortgage broker about refinancing your home to pay off the high interest often associated with credit cards. However, make sure that you have an ethical and professional party assist you so that you can see if the costs associated with refinance would benefit you overall in terms of debt reduction.

Another tip is that in a worst case scenerio look for a reputable debt consolidation company. When I had financial trouble and was on the verge of bankruptcy I called Credit Counseling Services. While they did charge a nominal fee, at the time I think $20/month, they were incredibly helpful in negotiating lower interest rates on my behalf. Be careful of the company that you utilize if you must take this route. Some are scams so check with the BBB or a charitable agency like Credit Counseling was at one time partially funded or affiliated with the United Way and operated as a not for profit agency.

Finally, again whether manually or by utilizing a computer you need to make a clear budget that includes what you must pay monthly, what you actually bring home monthly and what extra expenses you are incurring so that you can assess where your money is going and how to make better use of it.

Also, just like advice about controlling or monitoring other bad habits, like weight loss, keeping a journal for a week wherein you record all purchases (and I mean be thorough) like that Starbuck's coffee you stopped for or the peanuts you bought out of the vending machine at work. By doing this you will see miscellaneous expenses that add up and contribute to your overall financial situation that you might have otherwise ignored.

Sorry to be so lengthy but I hope some of these ideas prove helpful. Good luck.

Cut up your cards...go to credit counseling in your area who will ask your companies for extensions and lower payments and pay until you are out of debt. Then, go credit card free. Do not purchase above your means.

Or if it's not that bad so far, just make higher payments until it's paid off, but still cut up the cards!

Don't use it to buy anything with anymore. Lower your standards of living a little so as to send big payments. It is a little sacrafice and disipline but I did it and I am so glad to be liberated.

Pay as much as you can every month.
Don't use any more credit cards.

Stop using them. Go to a cash only life and pay off what you already owe. I did it for a few yrs. It was hard at first. If you have a checking keep it . and go direct deposit and direct payment with bills. Makes you pay everything and no charge it.

Stop using it. Then try to roll the balance or part of the balance onto a different card that offers 0% interest for say 12 months. Pay as much as you can on the card that charges the most interest. Then work your way down.
Remember, its not how much you make, its how much you spend....

this strategy will help you pay off credit card debt if you are willing to work for it.

1. You will eliminate credit card debt-- Make it a resolution

Put it everywhere, in writing. It could be your study, kitchen, toilets, your desktop wallpaper etc. The idea is to reinforce this thing, once you see it everywhere, your natural faculties will automatically work towards achieving it. If you are alone, who is suffering from this credit card debt then it's ok, otherwise if you wish to slash the credit card debt collectively, everyone should agree to the task.

2.Reduce the number of credit cards, consolidate

Sit together, and think which credit cards you require, keep them, get rid of the rest. Ideally you should be having one, but diversity of activities in life demand more types of credit cards, so it should be a tradeoff between the requirements and the credit cards you have. If you have credit card debt from multiple cards, go for a credit card debt consolidation. The idea is to pay off credit card debt faster and in a more manageable way. Don't relax and be sluggish with your credit card debt repayments.

3. Make sure that you spend less than what you earn

This is most important. If you are not able to live within your means you will be in debt- in one way or another. Budget out your finances and get rid of wasteful expenditure. Make weekly, monthly, quarterly and yearly goals. Don't complicate things while budgeting. It is easy to get carried away while doing this exercise and if you are planning in group make sure to take care of the sensitivities of your partners. The idea is not to create conflicts, but to synergize and work towards becoming credit card debt free. Read more from: http://www.credit-card-gallery.com/article/207,Credit_card_debt_elimination_in_3_easy_steps

I climbed my way out, so here's where the rope is: I didn't go thru credit counseolors or any of that crap. I made payments to the collection agency monthly. they took me to court even though i was paying them. i paid huge chunks for 9 months straight when the judge said i could stop paying.

When the collection agencies call, pay them minimal amounts if you have to. If you have them on recording denying your payment or payment attempt, you can take it to court and not have to pay. Anyway, pay them minimal amounts. When the balance gets to a reasonable amount, you can settle for 50% of your debt.

If you are still paying the actual credit card company still and you know you can't pay it all, let it goto collections and follow paragraph #2.

pay off as much as you can each month. Dont ever just pay the min balance.

In the mean time do not use the card anymore. Use cash only. if you do not have the money to do something then, don't do it.

Also start a savings account that you put at least 15% of each paycheck into.

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Consolidation is the best solution available to the credit cardholders to improve their future credit. People go for debt consolidation for many reasons: prolonging the loan period from 5 - 15 years and reducing the interest rate. Consolidation allows you to go for a loan with lower interest rate than the one you are currently paying. Besides it simplifies the loan repayment as you are paying only one lender in place of various payments to different lenders.

They have those debt reduction companies that you could call. What they do is consolodate all your bills, and then you pay them one monthy payment instead of paying tons of payments to everyone else. I would definitely give one of them a call.

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