Eliminate Credit Card Debt Legally - Strategies for Paying Off Credit Cards

Eliminating credit card debt legally will free up funds in your monthly
budget. It will also improve your credit score so you can qualify for
better rates on future purchases, such as a car or home. To start
getting your credit cards under control, lower your interest rates. Then
develop a payment strategy. If you need some outside discipline, turn to a
debt management company.

Start Lowering Your Interest Rates

High interest rates make it nearly impossible to get a handle on large
credit card balances. But by lowering your interest rates, you can
increase your payment on those cards’ balances without increasing your
overall payment.

The two most common ways to reduce your rates are to open a new credit
card or consolidate with a loan. Transferring balances to an
introductory low or no rate card is a no cost solution. Consolidating bills with
a home equity or personal loan provide long term low rates with some
closing costs involved.

Develop A Payment Plan

Once you get your interest rates under control, develop a payment plan
to get out of debt. One course is to make extra payments on the lowest
balance. Then when it is paid off, use those extra funds to pay off the
next lowest balance.

The other option is to make extra payments on the highest interest
account. Even though it may take longer to close out an account, you will
see a long term savings in your interest costs.

Get Help Before It’s Too Late

Before you start thinking about bankruptcy, look at a debt management
company to help you deal with your debt. For a small fee, they will pay
your bills, lower your rates, and structure a debt elimination plan.
While your credit score may temporarily decrease, debt management is
better than a credit report with a bankruptcy or foreclosure.

Evaluate all of your options before settling on a credit card payment
plan. The greatest savings are often found with the do-it-yourself
approach of debt consolidation and budgeting. However, debt management
companies provide a valuable service to those who need more structure to get
out of debt.

View our recommended companies for
Eliminate Credit Card Debt or view all of our Recommended Debt Consolidation Companies Online.