When it comes to credit card debt, a lot of us have been in over our heads from time to time. It can be one of the hardest things to get out of without a good solid plan that is followed until the end. Here are some things to help you get on that path of credit card freedom.
Get a Break - Call your credit card lender and ask for a better rate. Tell them you will keep up with your payments but that you are struggling and a better rate would help. A lot of times the issuer will give you a break for a short period of time. It's worth a shot.
Transfer It - Another way to begin to tackle your CC debt is to transfer it to another card with no interest. The key here is to work on paying it off before the regular rate kicks in. You can do this a couple of times until you can get a handle on getting it paid down. However, just transferring all the time doesn't actually get you out of debt. All it does is bide you time with no interest so you can work out a plan.
Work It Out - Work on a plan on how to pay off the debt. There are two ways of thinking. There is one that says to work on paying off the card with the highest interest first (which on paper sounds good) but, it can take a long time and you may lose momentum. Another line of thinking is to pay off your smallest debt first, then roll that payment you have been making into the next one and keep going creating a "snowball" effect. This works better with the psychology of paying off debt. It feels good to accomplish something and it causes you to want to accomplish more. Figure out which will work better for you and then plan what order your cards will be paid off. In either case, you can "snowball" the amount from each debt until the last so that they will all be paid off sooner. Another thing you can do is to throw any extra money toward those debts. Money gifts, interest money, refunds or an extra pay week call all help reduce the debt sooner.
Personal Loan - One other thing you may be able to do is to get a personal loan with lower interest that you can either consolidate your credit card debt or just pay off the one high interest card you may have. I have been fortunate in the past to have a family member help us when we were crippled in CC debt and we made a commitment then to not use credit cards again and made a plan to pay back the family member as fast as we could whether there was interest or not. We did it in a year and it change our lives forever.
We tell ourselves we will get a card for "emergencies" and then before you know it groceries become an emergency because we are so far in debt we can't seem to get it paid off. It was scary to give up our credit cards because all we could think about was what if something happened and we couldn't pay for it. However, when we made the decision to not use credit cards anymore and get out of debt for good, we learned how to live within our means and have had more freedom with our money than we ever had before. I love being free from Credit Card Debt!--Jen Lush