Credit card debt can be managed easily and it only takes a couple of days to sort out the mess and start working towards an elimination of the debt. That said it does not imply that it will easy. All I can say is that it requires focus, steely determination and financial discipline. Nothing else matters.
There are a variety of ways by which you can reduce your debt and there is nothing right or wrong in any method as long as it helps you to reach your goal.
Fees – In general if you have multiple credit card balances and you are staring at a mountain of debt then it is better to have the debt consolidation companies or credit counseling companies take over. Well yes they will take their cut and charge you fees when you are already in debt. However you can do the same on your own. It will require some phone calls and some determination. This is one a area where you can easily avoid the fees.
If you have multiple cards then you can decide which one you want to have a go at first.
Multiple cards challenge – You can have a go at the highest rate card first or the lowest card first. Some people prefer the highest one as that is the sane thing to do with the money on the highest rate paid to stem the outflow of money.
However you can argue and pay the lowest one first as typically that will help you pay a lot more money than the highest one and it helps to achieve a sense of satisfaction.
Make a phone call – Call up all the credit card companies and ask for a lower rate. Some would oblige and some will not. Those who do not, try them again another day. You may get some heartburn but the purpose is achieved. Also in a lot of cases these reps may have the authority to lower the rate then ask for the supervisor. That helps in a number of cases as the supervisor typically will have the authority.
Transfer to lower rate card – If you have a lower rate card then it makes sense to transfer the balance to that card. Make sure that it is free as oppose to paying a fee on balance transfer.
Budgeting – This is basic stuff. You need to have a budget and a plan. You need to stick to this plan. Now that plan has to be created and a spreadsheet is the simplest way. No need to pay fees and make sure that you do not go online and pay money for the same. There are sample spreadsheets available for the same.
Free credit counseling service – There are free consumer credit counseling companies that will help you reduce debt. The main example of one such company is National Foundation for Credit Counseling
Final advice – Never pay a minimum amount on the credit card debt only as it will suck you more into the debt pit. Pay more than the minimum and you have achieved a lot towards credit card elimination.