Recently, I came across a magazine from the year 1992. Flipping my way through trans-fat laden recipes, silly fashions, and super big hairstyles, I had a jolly laugh. That is until I found an article about reducing personal credit card debt. I assumed debt relief methods would have changed considering the two very different economic pictures between now and then. Such a contrast in the financial market would result in different approaches to debt relief, right?

I was surprised to see that credit card reduction advice hasn’t changed very much in the last decade or so. Certainly, the economy has changed significantly in that time, so shouldn’t our methods for credit card debt relief change, too?

The basic principles of financial freedom don’t change over time. Live within your means and put some money aside each month. Throughout the last 10 to 15 years we have become a credit card dependent people, using credit cards for ordinary, everyday items.

I suspect that in 1992 an article about debt relief didn’t get as much attention as the clothing and hairstyle articles. But, today, more and more people are seeking sound advice on methods to manage their own freedom from credit card debt.

If you are serious about getting that credit card debt under control, there are a few standard steps to follow. The steps outlined here are very similar to the steps outlined in the article from 1992, and will help you get back on the road to financial recovery:

1) Cut Up Your Credit Cards – Painful as this may be, it’s a crucial first step. Start by cutting up in-store credit cards and work your way up to your major credit cards, then stop. You want to keep one major credit card, meaning a Visa, Master Card, American Express, and the like, for the purpose of booking flights, hotel rooms, and for emergencies. Review your remaining major credit cards, determine which has the lowest interest rate, with no annual fee, and keep that one card. Now, cut up the remaining cards.

2) Crunch The Numbers – Now it’s time to do a family budget if you haven’t already done one. Without spending a lot of time on detail, simply take your net income each month, subtract the expenses that must be paid every month such as mortgage, rent, heat, lights, food, and clothing. What’s left is your disposable income; what you have to work with to pay off the credit card debt. This is information that you must have on hand in order to move on to the next step.

3) Time to Make the Dreaded Call – Calling the credit card company is the most feared but most critical step to reduce your credit card debt. Making minimum payments on your credit card each month won’t bring that balance down. The interest alone will continue to grow beyond your current balance owed. Pull out all your credit card statements, take a deep breath, and call customer service. Tell them that you are paying off the balance, but that you can only do so if they reduce the interest rate and reverse any late fees or overage charges. Most credit card companies will work out a payment plan for you. Be prepared to negotiate, be firm, and be persistent. The credit card company wants your money, so they will be willing to get it on your terms if that’s the only way possible.

4) You’re Going to Need to Sacrifice – Perhaps you’re expecting a tax refund, or a bonus, or some other “found money.” We all like to have a little extra money to spend, however, this time it’s different. Sorry to rain on your parade, but you have a goal of being debt-free and you have committed every penny to spending down your debt. Look at the interest each credit card company is charging you, even after negotiating a lower rate, and that money becomes more valuable than ever. Your found money is going to have a much bigger return if you use it to reduce that interest-laden debt.

5) Don’t Give Up and Don’t Give In – You won’t be living in a new debt-free world overnight. That’s the reality. You might not be able to breathe easier for a year or more, but you will be making progress toward freedom from credit card debt. There are no instant fixes, contrary to what those commercials tell you. Your credit card debt didn’t happen overnight, so it won’t disappear quickly either. You should see some progress in roughly six months or so. This encouraging news may entice you to splurge on yourself to celebrate, but don’t. Just look at the interest you’ve been paying all these years on those fancy treats for yourself. Haven’t the credit card companies gotten enough of your money? Hang in there; rewards are coming.

6) Consider a Debt Consultant Only After Serious Research – In the last decade, debt consultants have blazed a trail for themselves. Offering credit card relief “quickly and painlessly” is often heard in their commercials, but we know that’s not possible. Do careful investigating before you decide to hire a debt consultant. Interview them in person and ask detailed questions like how much of your payment is actually going to the credit card company and how much they keeping. If they tell you not to worry, they’ll take care of everything, you need to stop the interview and keep looking. Any debt consultant that you consider should be checked out with the Better Business Bureau. You may also wish to ask for advice on choosing a debt consultant from reliable family and friends.

Debt management isn’t much different now than it was in the 1990′s. Our elders handled their finances much more wisely than some of us did; don’t spend it if you don’t have it and save some money every month. In the last decade, credit has been loose and easy for some of us. Many of us have fallen into this hole through no fault of our own. Regardless of how it happened, we now find ourselves in a personal credit crunch. Credit card debt relief can be achieved if you have the fortitude to stick to these strategies. It won’t happen overnight, but you will reach your goal if you hang in there, and sleep more peacefully for your efforts!

Nicole Dean is the mostly-sane mom and owner of ShowMomtheMoney.com – a fun and informative site to help moms achieve success working from home. She invites you to learn more ways to save money in her Frugal Moms section. Be sure to sign up for her free tutorial for work at home moms.

categories: credit card debt reduction,pay off credit cards,credit card debt,personal debt,family debt,saving money,family budget,personal finance,money

It seems credit cards are the norm in today’s world. The problem is many individuals lose control and are not capable to make their installments, ending up with a huge amount of debt. When you find that you are in this circumstance, you almost certainly feel as though you will never get them paid. The appropriate way to pay credit card debt off is to make a checklist and decide which debts are a priority.

First of all, you should put each credit card you owe on the list, along with the amount you owe, and the interest rate you are being charged. The ones with the highest interest rates should always be paid off first, as it will save you more money in the end. While you may want to start out with the smaller amounts first, this is not always the best option.

Secondly, an most important thing you can do when trying to get your finances under control is to get in touch with every single creditor. Those who do not communicate with their debtors are the ones who have the most difficult time paying them off. What you may not realize is that by contacting each debtor and taking the first step, you may find they can offer you a deal, perhaps settling for a much smaller amount to consider the debt paid in full.

Several people find they are often in the dilemma of paying off the credit cards or providing their family with their needs. What you must do in this circumstance is to cut back on as many things as possible. Begin using coupons when grocery shopping. Cut your cable television down by getting the basic channels only. These may not be the things you want to do, but, sometimes, it is the only way.

Take the time to pay credit card debt off the correct way instead of worrying about it. Disregarding your financial difficulties are not going to make them go away. In fact, ignore them too long and it could make your situation a lot worse.

Pay Off Your Credit Card Debt Now Live Life Without Debt At PayCreditCardDebtOff.org