How to Get Rid of Credit Card Debt

The first logical step to getting rid of your credit card debt is to not add anymore to it. I would suggest cutting up all of your credit cards with the exception of maybe keeping just one for emergencies.

I also advise against using credit counseling services such as CCCS. I am not saying that all credit counseling services are bad this is just my experience with CCCS. When I worked with CCCS it was suppose to be a five year plan. Well, it wasn't. At almost four years I noticed that the balances weren't making that big of a change. So, I went another route.

The route I decided to try was to contact each creditor individually and try to work out something with each of them. Four out of five companies worked out some really great deals for me. Some lowered the interest rate way down. Some even removed the over limit and late fees. I highly suggest to contact your creditors individually and see what they would be willing to do. You may be surprised.

It can get quite overwhelming if you have a lot of credit card debt, but it's not impossible to pay it off and be able to pay it off quickly. A good jumpstart on paying down your debt is to always pay more than the minimum. Even if it is only $5 - $10 more. Every little bit above the minimum helps.

It is also very important to never pay late. Paying your credit card bill late will make you incur a late charge which could be anywhere from $25.00 to $35.00. Always make your payments on time.

Another suggestion is to start with the lowest credit card amount and work to pay that off first. If you can afford to do it I would pay twice the amount of the minimum payment or more. It won't take you long to knock out those credit cards with the lowest balances.

I would greatly advise you to never file for bankruptcy. With that said, if you are in a situation where you have no income coming in or you do not generate enough income to pay back what you owe then it could be an option for you. I recommend heavily weighing all your options before deciding on bankruptcy. The aftermath of filing bankruptcy can last for several years. It can affect your future purchases of big ticket items like a new home or new vehicle.

Some creditors are willing to negotiate a settlement to settle your debt. It would be for a lump sum to pay it off. The amount of the settlement could be anywhere from half of what you owe to three fourths. If you have come into a large amount of money and want to put it toward your debt this may be an option for you. You may also want to consider borrowing from friends or family if bankruptcy is the only other option.

As scary and overwhelming as credit card debt is you can overcome it. It just takes a plan and taking action.