Credit Card Debt Advice

If you're looking for credit card debt advice, chances are you've accumulated higher balances on your cards than you know what to do with. If you're like many people,
you may be charging gas and groceries, because you just don't have enough money to make ends meet every month.

This is a bad situation to be in, but be assured that you're not alone. A lot of us have been there (a lot of people are still there), and there is hope. I used to be deep in debt myself, but I've managed to pay off those credit cards, and I don't carry a balance any more from month to month. I'm going to give you credit card debt advice based on my experience.

Ready? Here we go:

1. Get over the idea that you'll get anywhere paying the minimum payment.

The credit card companies specifically design things so they can stretch out your debt over years (and even decades) to keep you paying interest to them for as long as possible. Why wouldn't they? Why would they want to work when they can get tons of money for free just by letting you borrow theirs?

Many people in credit card debt think they can climb out by paying a little extra on each card every month. This is actually a bad approach. If you remember only one piece of credit card debt advice, remember the next one...

2. Pay off your highest interest credit card first.

If one card is at 9%, one is at 28%, and one is at 15%, you want to focus on the one that is at 28%. Put all your extra resources into paying off that card while you continue to pay the minimums on the other cards.

To many this seems counterproductive, but the highest rate card will grow the biggest the soonest, so it's important to get rid of that debt as soon as possible.

3. You can negotiate a better deal on many cards.

If you're feeling overwhelmed by those interest rates, call the credit card companies and request a better deal from the customer service representative. Just tell the rep you're getting better offers from other credit card companies and that you're thinking of switching. Most reps are authorized to lower rates instead of risking customers.
This advice won't just lower your interest rate so your balance doesn't increase so quickly, but it will also make your minimum payment lower each month.

4. Move your balances to cards with zero-rate introductory rates.

You may have heard this piece of credit card debt advice before, but did you act upon it?

If you can qualify for a new card with a low or zero introductory rate, don't hesitate to shift your existing balances over to that card. This can save you a lot of money in interest while you whittle away at your debt

Just be sure to read the fine print. Introductory rates are just that: rates you only pay for 6 or 9 months. The rates can hike right up to the old rates (or even higher) after that period, so you want to make sure to transfer your debt over to a new card with a new introductory rate once that happens.

Also watch out for any balance transfer fees, and make sure the low introductory rates count for the balance you transfer, not just new purchases.

5. As you pay off the highest interest cards, cancel them.

Remember the earlier advice to pay off your highest interest cards soonest? Once you have them paid off, cancel those suckers.

Replace them with debit cards, low-interest credit cards, or no-balance charge cards. It's a good idea to keep at least one credit card for emergencies, but you don't need a wallet full of them.

A good way to keep that one for emergencies is to make sure you leave it at home. Don't take it out where you can fall back into the habit of using it at the mall or anywhere you might make impulse purchases.

Hopefully this credit card debt advice has helped you. The important thing to realize with paying down your debt is that it probably will take years. That can be depressing, but never stop believing that you can do it. Stick with the plan and make it work!