6 Tactics to get out of credit card debt
By Charles Hopkins
Published 11/27/2007 | Finance
Getting out of credit card debt takes perseverance and willingness to
succeed. So whether or not you are being swallowed by the sink hole of
credit card debt or you are just starting out to dig yourself into
credit card debt - you have to make some decisions before it's too
The six tactics listed below will help you get out of credit card debt.
1. Stop using your credit cards - Leave your credit cards at home.
Did you know that by using your credit cards you are paying additional
interest on the credit card balance you owe on which you've already
been charged interest. Unless you pay the new charges when you are
billed you are accumulating additional interest on both present and
2. Determine how much credit card debt is costing you. How? you may
ask! You can determine how much credit card debt is costing you by
seeing how much interest rate you have to pay. This is done by reading
the fine print on your latest credit card statement. If you do not
understand then you call your credit card company and have them explain
it to you. By law they have to explain it to you.
3. Lower the interest rate you are currently paying on your credit
cards. Lowering the interest rate you are currently paying is the most
effective and easiest way to get your credit card debt situation
better. You can lower the interest rate you are paying by transferring
high interest rate amount balances to lower or no interest rate
companies. Once you've stopped using your credit card you've stopped
your situation from getting worst, it's now time for you to improve it.
4. Ask your credit card companies to lower your interest rates.
Since you already know the interest rates it is time for you to ask
your banks and credit card companies to lower the interest rates. You
should call them and ask to speak with a supervisor. The supervisor has
the authority to give you a lower interest rate.
You should tell them the rates are too high and you want it
lowered. And also let them know that if they are not willing to lower
your interest rate you are considering to close your account and
transfer all your credit card balances to the company that is willing
to give you the lowest interest rate.
5. Consolidate your credit card debts. By consolidating your credit
card debts - transferring all credit card balances to one credit card -
is an effective way of getting out of credit card debts. So when
negotiating to get a lower interest rate you should let it be known
that your ultimate goal is to get out of credit card debt at the lowest
possible cost and not credit card shuffling.
6. Cut your savings in half. It would be foolish to be paying high
interest rates while continuing to save the usual amount, if you are
indeed saving. If you are already so deep in debt that no one company
is willing to loan you the money to consolidate your credit card debts
then you would have to resort to this tactics.
It works like this. Get all your credit card balances. Divide each
balance by the minimum amount you are required to pay each month. This
tells you how long it would take to pay off each balance. Start by
paying off the one that takes the least amount of time (half your
savings minimum payment). Continue making minimum payments on the
rest. When that least payment is finished you would pay the next least
payment and so on. You would continue using this tactics until you are
no longer in debt.
If you follow the above tactics you should be on your way to
getting out credit card debts and start building wealth for your