What's the best way to rid yourself of credit card debt?

Answer 1

Pay them off and don't use them.

Answer 2

Cancel all but one and then lower that limit to $1000 or $500 to have just in case of an emergency. Then, when/if you have to use it - it is a manage-able amount of money to pay off.

In the meantime you have several options. Close them all ( with the exception of the one mentioned above) and start making more than the minimum payment. You may try calling the credit card company and asking them if they would lower your interest rate ( i had luck with Discover card doing that).

You can also pay the miminum of all but one and make huge payments on that one until it's paid off and then do the same with the others until they are all paid off.

The other option you hvae is going to a credit counselor or a debt counselor. I would suggest you think long and hard about all the pros/cons of that before doing anything. You also have to make sure that the debt consolidator is not making any money off of you - there are several of these places that will make you pay the first month as a 'set-up' fee where you still have to pay your ccs for that month too - try to stay away from them. I used Credit Counselors of America - i think it's called Take Charge America now. I've gone from a LOT of cc debt to about $3K now which will be paid off in about five months. They lowered the interest rates on all the cards and the balances have really come down, that is the nicest feeling in the world. They did not affect my credit - HOWEVER, one of the credit cards I used to consolidate on this reported to the credit agency that i was a "high risk for bankruptcy" and that mark as stayed on my credit report for a few years - it is finally gone, but it made getting a car loan very difficult after I needed a new car - i had a lot of credit before going to these people, but it was PERFECT credit - the car i bought had a 17% interest rate on it - that hurt - A LOT!!! It was also the best rate i could get and i found out it was bc of that mark on my credit report. The thing that stinks is that that cc always got double the minimum payment ONTIME every month. So, just weigh you options heavily and consider the CONS in addition to the pros.

I hope this helps and wish you success. CC debt is the worst thing to have and i am having a big party the day my balances all say ZERO! :)

Answer 3

First, control or modify your spending habits. Only purchase what you essentially need. Do not buy anything that is not a necessity! If your credit card bills are high and you owe a lot of money, there are a couple of options you may have. First, if you own a home or condominium, either recast your mortgage or get a HELOC (homeowners equity line of credit) and pay off your credit cards. The interest rate will be lower and spread out over a longer period. Second, if you have equity in your car, recast your car loan. It will be a lower interest rate, but no as long as a mortgage or HELOC. Some banks will let you terminate your credit card and transfer the balance to a longer term and lower rate unsecured personal loan, but you must give up the credit cards. Again, learn what put you in this position and put a stop to it. Good luck!

Answer 4

Immediately cut up ALL credit cards. You should only spend what you have and not live on credit.

Next pay off each month as much on each credit card you can, NOT just the minimum payment (which is really only interest).

Now when you buy something you must pay cash, not credit card, not check. And you plan ahead. No spur of the moment buying.

When you go to the store take a list and stick to it. Do not go window shopping, which leads to spending money. And use coupons.

Cut out going out to eat, especially if you do it during lunch at work. Brown bag it, including snacks and beverages. You will be surprised how much you save.

IF you need new clothes, consider shopping at a used clothng store or at least go to a less pricey store and only buy IF something is on sale.

It will take time and effort. It will take a huge amount of self control.

And, at the end of each month when you have paid off one of those credit cards (try to pay the one with the highest interest rate first), treat yourself to an inexpensive meal or movie. Oh, forgot no movies, no bowling, etc, until you have gotten out of debt.

Once you are out of debt, and you can get there, don't have more than one credit card, even if they offer you 10% or more off for opening an account. And pay off the card at the end of each month. Meaning don't charge more than you can afford for that month.

Use credit cards only as an emergency like a medical bill you did not expect.

Answer 5

Okay... I work in this industry. (1) payoff or pay down your debt (2) unless you have an unusually high # of credit cards, then KEEP THEM OPEN without a balance unless or until someone requires you close ZERO balance accounts to get a loan at the best possible terms.

Common mistakes:
(1) a person must establish credit to have the best score.. TRUE; however, you must establish NOT TO MUCH CREDIT or it works against you
(2) running high balances. Okay, you have that much to use, so why not... well... that lowers your credit score & it puts you in a bind if something unexpected occurs and then you miss a payment
(3) it is no big deal to be less than 30 days past-due or only 30 days once or overlimit only once - FALSE!!!!! More recent credit reportings & changes in terms/conditions on some credit cards/loans can mean this will make your life MISERABLE!!! Do not act like a 3 year old whne it comes to your credit.... the customer service rep may empathize that the post office lost your payment & waive the fee; however, your APR can rise if you are late. Your credit score is negatively effected when you go overlimit, even only 1 time. Make any & all necessary arrangments to make 100% certain your payment is there ontime. That may mean make your payments on-line through your bank account 10 days ahead of due date to make sure there are no problems.... whatever it takes, overnight your payment. I get no less than 30 calls on an average day from someone who's payments are NEVER late & the only possible explaination is that the payment got lost in the mail. Then that Credit Card Holder is faced with the account being past due, hopefully a waivable past due fee, but not always.... and having to pay thier bank to put a stop payment on the check. With the company I work for, late 1 time less than 30 days is no big deal... but then, when you have some other issue that comes up within 12 billing cycles, your interest rate goes up until all payments are on time for 6 - 12 billing cycles. 100% OF PAYMENTS ON TIME... this is the RESPONSIBLE WAY

In summary, there is so much to gain by being responsible that it is very worth any effort it takes to get it 100% right. Best credit score means better credit offers and better job offers. Lower score then you have higher fees, higher interest, and not as great job offers... make it worth your effort. I agree with the person who said pay it down with tax refund, that is one good way... when you do that, then keep your balance WITHIN WHAT YOU CAN PAY OFF BY THE END OF THE BILLING CYCLE.

Answer 6

1. Don't start.

2. Okay you have started. Stop charging. Take your balance and divide the total amount of your balance up into 12 months of equal payments. Pay off the first payment completely according to the calculations if this is above your min. payment. If it is not, then make the min. payment and add the 1st month to it as an additional payment. If you have enough money before the end of the month, make the second monthly payment.

EXAMPLE: You owe $1,200 divided by 12 = $100. Your min. payment amount is $157.00. Pay the $157 or whatever your min. payment is and add on the additional payment of $100.00 If you have extra by the end of the month - add the next months $100 to this and send it in. In this way the payment will shrivel in no time at all. Continue doing this until ard is paid off in full.

3. If you can't make anything but your min. payment do so and mail in early if you can. Pay for everything on a cash basics or do with out.

4. When you have paid off your debt, cut the card up in 4 equal pieces. Glue to a piece of cardboard in random order and write under the card: "This is what my life is like when I buy viva my credit card." Place in frame and hang on wall. Look at daily till the happiness of a credit card free life takes hold than look at once in awhile to remind your self the unhappiness that the card caused you in the first place.

Answer 7

Chapter 7 Bankruptcy,...

Its a partial bankruptcy, it will erase all your bad credit for about 6-7 years, after that you start fresh all over again, only then you don't make the same mistakes the next time around.

Sometimes, when you do file a chapter 7 - a Creditor might allow all your previous negative balance to vanish, while you keep your account,... The catch usually is that although you might still have that credit card account, the rate is very very VERY steep (a very higher rate).
Which forces you to be very careful, or else. Which could either lead to fines or even in some cases time in the slam.
Citibank sometimes may make this offer to account holders who are going to file a chapter 7. But its better to contact whom ever you have your bad credit with, and let them know you are going to file - they might offer you a similar deal.
Citi did exactly that when I filed a chapter 7, . . two years ago. I opted to pass on the offer. I rather learn on my own that difficult lesson, and start fresh when all seven years are up. Its kinda hard, not having the conveinience that credit crutch. But when you think about it, having it was the cause of the problem.

Growing up isn't always fun, and some lessons really suck.

I hope I'll be a better person, when its finally over and done with.

Good luck!!!

mahalo

Answer 8

The simplest way is not to apply for one. But if you already have one, try to limit spending unnecessarily with it,.If you need to charge anything to the card,(which at time may come in handy when you are short of cash) make sure that you are able to pay the total amount you have used religiously every month to avoid interest being accumulated.
Disciplie is the word as far as getting into debt is concerned! Budget your spending, dont spend more than you earn, then you wont end up laden with debts be it through credit card or other financial woes like loans, things bgt through monthly repayment and so on!

Answer 9

First don't have any credit cards. Just one with a credit limit of 500 dollars. Second if you have credit cards cut them all up and go one step more. Contract your credit card company's and tell them to put a hold on credit. No more charges and don't send new cards out until I tell you other wise. Than 3rd get a job and pay them off. Start with the smallest and work your way up. Be do pay on them all. Like you pay one off and you was paying 50 dollars on it. Use that money to pay that much more on the next card. In time you will pay them off.

Other ways is to win the lottery or rob a bank. But if you rob someone than you still have the bill and be in jail too.

Answer 10

First, stop using all credit cards!! Cut them up. Second, make more than the minimum payment each month--you must pay the monthly interest, plus the minimum payment, plus say $50 more---each month. If you work over time make an additional payment that month. Eventually, you will see the balance reduce and you are on your way. DO NOT apply for more credit, seek a financial adviser and work out a budget then, maybe one day another credit card will be in your future.

Answer 11

The best way is to put your self on a budget. Cut out any unnecessary costs. Microsoft Money is a great program to help with budgeting. If you have more than one credit card, you should start paying off your highest interest rate card first. Be sure to also make more than the minimum payment. If you just make the min. payment, it only goes to interest and you are not paying off any prinicpal. If you have to consolidate all your cards to a lower rate card. But BEWARE: if you do this, you must close your other accounts and cut up the cards. Otherwise, you will just have all this extra credit to spend spend spend. Good Luck! Ps_ you may also want to try your local consumer credit counseling service.