How to get out of credit card debt?

Answer 1

Cut up all your credit cards.
Live within your means.
Pay off your old credit card debts.

If you need help, contact a consumer credit agency that helps people manage their money and pay off their debts.

Answer 2

Depends. If the credit account isnt already in collections and is overwhelming you, refinance if you are a home owner, usually in revolving accounts creditors arent willing to do settlements to help stop the interest because thats where they get the means to keep there company afloat. The idea is to stop the interest so that you can pay the debt, the only way to do so is to let it go to collections where you can negotiate a settlement offer. Never go through (Consumer Counseling Services where they pay monthly. they only aggravate the situation and if they arent paying the minimum by your due date they arent affecting the account balance, as you are doing yourself. If the credit card account is already in collections by no means should you think you do not owe the entire balance, that you only owe what you charged. You signed up for the interest monthly on the balance owed by your due date. Again if in collections negotiate a settlement offer. Make sure they fax or mail you a copy of the settlement offer agreement before you secure a payment with them so that they will have to honor the obligations, dont take the collectors word that they will honor it, YOU DONT KNOW THEM! Make sure you dont skip a 30 day period within the settlement offer or you will forfeit the settlement and the funds paid will go to the balance owed and you will have to start over. Only allow your accounts to go in collections if you can pay off the lump sum for the settlement. If your not ready keep struggling with the month to month cycle until tax season when you would probably have the lump sum payment. Also remember your account was bought because its a revolving interest bearing account, and settlements dont go down they are negotiate from the balance owed. This settlement will be updated to the bureaus. Dont panick, the interest has stopped, you can always go back 30 days 60 days, a year , whenever and pay the remaining balance to be reported as paid in full. Keep in mind that if you save $600 or more it is reported to the IRS as a gift or income earned to pay tax on. But no more extra money on the interest alone. Good Luck

Answer 3

First you should stop using them. I dont know how much debt you are in. IF you are in thousands of dollars worth of debt i would make a budget up each month and pay on your credit cards. If you can pay all of you credit cards call you credit card companies and talk with them to make a payment plan. If that doesnt work pay on the card with the most debt on it first then pay on the next one. Other things you can do is stop going out to eat, stop going shopping, and try and save money. use coupons when grocery shopping.

Answer 4

First, stop using your credit cards. Second, sit down and make yourself a budget, what you bring in each month and what needs to be paid each month. This may result in cutting out some extras for awhile (ie eating out, renting movies). If you can't pay for it in cash, you don't buy it. Third, pay more then the minimum payment on your credit cards, paying only the minimum payment is basically just paying the interest on each card and will only keep your debt the same as it is, it won't do much to actually decrease the balance. Fourth, call your credit card companies and see if you can get them to lower your interest rate--this will be a huge savings to you over time.

Answer 5

stop charging stuff

call the card company and tell them you want to settle and see what kind of arrangements can be made. They will close your account but if you have large debts, they may agree to accept less than you owe. You will have 'bad' credit for 3-5 years, but if you want to stay out of credit card debt, having 'bad' credit will keep you from getting back into credit debt!

Answer 6

How to Manage Your Credit Card Debt?
http://www.askaquery.com/Answers/qn1579.html

What is credit-counseling service?
http://www.askaquery.com/Answers/qn492.html


Debt Consolidation - Get Out Of Debt
http://www.askaquery.com/Answers/qn1643.html

How to Hire a Debt Counselor?
http://www.askaquery.com/Answers/qn1584.html

Answer 7

First I agree with Janine. Make yourself a budget. Also spend cash rather than plastic. People tend to spend much more when they use plastic because they can't see it. I guarantee if you spend a thousand on a card its almost nothing, but if you have to count each hundred and dollar you will think twice. Take 2 or 3 days to think about any purchases over $50. It works. I saw 3 books on sale half off that equaled $35 dollars. I almost bought them on the spot. I thought about it for 2 hous and realized how much I did not need the. Some people make purchase and later say "I wish I would not have bought that".

Pay your smallest bills off first. Cut back on things you don't need like going out, fast food, etc. The money you save there can go towards bills or needs. Like problems, a brick house is big but it started out have one small brick. it took quite a few bricks to build he house. Your situation is merely a lot of small bricks. Take care of the smallest ones first and work your way up. Before you know it you will be out of debt.

Also get a copy of all 3 credit report from equifax.com, experian.com and transunion.com and dispute anything that is inaccurate. Also get a copy of your rental history from the Rental Reporting Agency (RCR) and a copy of your checkwriters report from Chexsystems or Scan do the same for those 2 also.

Every dollar needs to go towards a bill or need. Even those pennies we pass up that probably equals up to $100.00 over time. Discipline your self and spending habits.

Also develop an envelope system. Say your budget for food is 200 and for utilities is 150. Have an evelope for each with the budget amounts in them. Once you have used the money in the envelopes up you must wait til next month. If you save in one category use place the saving in a backup emergency fund for hard times sake.

Discipline is the key. I know it may be hard sometimes but you will get used to it like you get used to driving a car.

Answer 8

Cut it up and starting paying it off. What i do if my balance is bigger than my minimum payments, I either pay a bit of it off with every paycheque (I'm assuming you get paid bi-weekly), three or four times the minimum monthly, or a combination of that. Pretty soon, you'll be out of debt, paying the least amount of interest possible.

Answer 9

try to contact credit card companies and see if you can get lower interest rates. This site has some great info

Answer 10

Cut the card in half and stay home for 6 months and pay the bastard off!