If you’re feeling bogged down by seemingly insurmountable credit card debt, you’re not alone. U.S. citizens held over $886 billion in credit card debt in 2010, according to the U.S. Census Bureau, and that number was projected to rise to $1.177 trillion by the end of 2011. Three Ways to Get Out of Credit Card Debt.
The average cardholder had $5,100 in credit card debt in 2010. High interest rates, late fees and overdraft charges can make you feel like you’re drowning in a sea of debt. But developing a payment plan you can manage without undue hardship and negotiate. With your credit card companies can help you get out of credit card debt sooner than you might think.
#1 Making a Plan
If you only have one credit card with an outstanding balance, making a plan is as simple as writing down how much income you have per month and the amounts of all of your monthly expenses. Use some of the leftover money to make payments on your credit card. If you don’t have any money left over, look for ways to reduce your monthly expenses.
Living without cable television for a year might not be ideal for you, but if it means you can put $100 a month on your credit card, it’s well worth it in terms of your financial future. Most people owe on more than one card, however. Make a list of your current debt on all cards along with the interest rates and any monthly fees for each card. Prioritise paying off the card with the highest interest rate first. Don’t neglect to make the monthly minimum payments on the other cards.