How to Get Out of Credit Card Debt Starting Today

Is your credit card debt stressing you out? Do you wake up during the night thinking about your debt and wishing you could get rid of it? Here are some tips that you can take to help you reduce and eliminate your credit card debt.

  • The first thing you will need to do is stop using your credit cards so that you're not increasing your debt.
  • Learn how to manage your debt. Review your financial situation: How much are you spending, how much debt do you have and how much money are you bringing in. Knowing where you stand financially will help you develop a plan of action.
  • See if you can consolidate multiple credit card debt to one credit card with the lowest annual percentage rate. Having one payment will help you see your entire debt in one place and you will be less likely to miss a payment, which may cause your credit card company to increase your interest rate. It's not always a good move though as some credit cards charge transfer fees, so crunch the numbers. You may also be able to transfer debt to a credit card with a low or no interest rate for a set period of time, so if that's the case take advantage of the transfer period to pay off your debt.
  • Make more than the minimum payment. Set a payment amount over the minimum payment that you can afford and stick with it. Even if it's only $ 10 over the minimum payment (every little bit helps.) Once your balance is reduced, your minimum payment will come down as well but don't be tempted to stray. Stick to your set amount and increase it if you can.
  • If you have multiple accounts make sure to pay off the one with the lowest balance first, while making minimum payments to the others. The feeling of accomplishment will give you incentive to keep going. Once you've paid off one card, move to the next one.
  • If you plan to close an account, make sure to close the newest one first. Keeping the credit card that you've had the longest will show a longer credit history on your credit report and is better for your credit score. It's best not to close any accounts but if you feel better about it and are prone to temptation … do it!
  • Do a better job of budgeting in other areas of your life. Clip coupons, take on another job, get rid of cable TV, go out to dinner less, etc. The more debt you can pay off, the better you will be in the long run.
  • Make unscheduled payments. Don't wait until you get your statement in the mail. If you get a raise or money for your birthday or holidays make a payment online. The longer you wait to pay off your debt the more you will pay in the long run.
  • If you have over $ 10,000 in credit card debt you may want to look into a loan that has a lower interest rate. Talk to your local bank or look into a reputable debt consolidation agency.

Source by Joe Maruca

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