Strategies to Get out of Credit Card Debt

Debt is probably ruining your life. You are not alone. Take heart, there are relief options. Americans carry more than $850 billion in credit card debt and this debt impacts the lives of well-meaning people. Debt is a national problem and also an individual one. You try to pay off your credit card debt in full each month, but you rarely succeed. The rising costs of living including unexpected life events and undisciplined spending are some causes of credit card debt. Now that you know the problems, research how credit card debt relief works.


  • Determine the amount of credit card debt you owe. Find a credit card debt relief service that specializes in helping you evaluate your debt to income ratio. This will help get you back on solid financial footing.


  • Establish a plan and start with a budget. You need to have a commitment to helping yourself. Track your money both incoming and outgoing. Study the problem and find the most troublesome area for you. Change your mindset about money and live below your means instead of beyond what you have.


  • Sell assets to pay down your credit card debt. You can earn money on eBay, your local paper classifieds, and yard sales. You may have a closet full of things that you don’t need anymore. Selling them could bring you some extra money to pay off debts.


  • Pay more than the monthly minimum on your credit cards, even if it is only $5.00. Paying more consistently will help you reduce your debt quickly. Pay more toward higher-interest cards first.


  • Shop around for credit card debt reduction services. Look for one with a favorable fee schedule and ask for a breakdown of all the fees involved. Check out the company with the BBB; this is a good way to avoid scams.


Your credit card debt relief plan should include debt negotiation, debt settlement, repayment plans, and debt consolidation.


  • Debt negotiation often results in a new payment plan or paying less than the total amount owed. Credit card companies don’t offer this type of payment plan, but you can seek third party help in negotiating.


  • Debt settlement is also debt negotiation. The debtor and creditor settle on a reduced amount that will be considered as payment in full.


  • Debt consolidation brings all your credit card bills together in one monthly payment. The debt consolidation takes a fee and passes the rest of the money on to creditors. Watch out for an unscrupulous company in this type of plan. The fees can make this type of program prohibitive.


  • Bankruptcy is a way to get yourself out from under crushing card debt. If you cannot make any payment on debts, bankruptcy is imposed by a court order that dissolves or restructures your debt. You will have a bankruptcy mark on your credit for up to 10 years that could substantially cause problems when trying to get credit.


Research the plan that is best for you and stick to it. Make a budget and move on with your life.