Strategies for Dealing with Credit Card Debt

Here's a short list of steps for dealing with credit card debt from MSNBC:

The first step for those who have overindulged on their credit cards is to stop charging immediately and move to paying cash, Walbert said.

Then, Walbert said, you need to set aside time to figure out how much you owe on all your cards and how much you think you can pay each month to reduce the balances. It won't happen fast if you're only making minimum payments, she added.

Next, consumers need to figure out how to increase their payments.

Another way to increase debt payments is by getting a part-time job, she said.

Simple and basic advice: stop charging more, identify your debt, and pay it off rapidly either by cutting expenses or increasing revenue.

Here are some additional posts that add extra insights:

• Get Out of Debt
• Yes, You Can Erase 15 Years of Debt in 14 Months
• Alarming Credit-Card Tricks
• You Can Beat Debt
• Nine Ways to Pay Off Debt
• How Many Credit Cards Should You Have?
• The Eight Commandments of Credit Cards
• Escape the Credit Card Trap
• Four Credit Card Traps

Comments

[eoft]

We have an option that is readily available in the UK and that is to transfer the credit card balance to another card - the new lender typically offers an interest free period of six or nine months - this can be a very useful strategy both to minimise interest payments on an outstanding credit card balance and as a way of holding over a balance until it is possible to pay it off.

[Harrison At Journey To Financial Freedom]

Stop charging credit card and live on cash basic is definitely the first step to deal with credit card debt. Just like a water barrel. IF the barrel is broke, no matter how hard you try to add water, you still can not keep any water. The theory is same to money.

[new credit card applications]

Don't just throw yourself at a mountain of debt without preparation. How many cards do you have? What interest rates do they charge? Which have the highest balances? Write down your balances for each card, and their interest rates. Take all your credit cards out of your wallet. Start paying off the card with the highest rate first, and then the next highest... Furthermore you can negotiate with your credit card company for a lower rate. If you've had any of your cards for a while, take advantage of being a faithful customer, and call them up to demand a lower rate. Also you can consider combining your debts onto one or two of your lowest rate cards, if you've got some credit room on them. Simply call your lender and ask how to transfer funds.

[credit card analyst]

When you want to improve your credit history and increase your credit score after a recent debt the best way is to find a co-signer to get a loan or new credit card. Besides you should pay all your bills on time (i mean not only credit card bills but also telephone bills)

[Steve "The Debt Settlement Man" B]

You simply cannot live off of your credit cards, that is what puts people in the place where they cannot handle the situation. By just making the minimum payments you are going to rack up more debt, lose more money in interest and stay in debt forever.