Get Out of Credit Card Debt

The May 2-7, 2007, the Gallup poll suggests that nearly 1 in 4 consumers (25%) are uncomfortable with their current level of debt. Despite lower interest rates in recent years, people are not comfortable with the amount due on home loans, car loans, student loans, credit cards and other debt. [source: www.galluppoll.com]

Unpaid credit card balances are the worst kind of debt. The interest is high and if you only pay the minimum balance, it could take you years or decades to pay off. Devise a plan for paying these off and make it a priority.

Start by paying off the credit cards with the highest interest rate. If you have one card with a really low balance, you might want to work on paying it off too.

Negotiate with your credit card companies to reduce the interest rate. If you have had your card for a while, as loyal customer you should be entitled a lower rate. Ask for 11% or 12% and expect surprises.

Make it a goal to carry only one credit card with you, for emergency use only. Reduce the available credit on that card so you will be less tempted to splurge. Never close all your credit card accounts, as you want to build a solid credit history.

You have the power to get your credit card debt under control. Use that power and see how good it feels to be free from debt.