If you are battling with credit card debt then you are not alone and not all is lost. Here are a few tips on how to relieve your credit card debt. The first thing to do is to write down all your debts. This way you know what you owe. Where you are unsure, ask for records from all your creditors. Make a budget that includes the payment scheme of your debts and your basic needs. Eliminate all luxuries and extra expenses and use the extra cash in facing off the debt. Any windfalls or bonuses should also be used to reduce debt.
If you are paying the minimum balance on your credit cards, begin with those cards that have exceeded the 50% credit line. Cards that are maxed-out place the account at a risk of being closed unexpectedly, which can have dire consequences on your credit record. Find a way of paying more than the minimum balance. You can do this by getting extra cash from selling off personal belongings that you do not need. You can also get a part time job other than your normal daytime job. Use any extra money you get to pay off your credit card debt.
If you are still overwhelmed, you can visit a debt counselor or financial advisor to advise you on the way to go about solving your debt problem. Alternatively, talk to a debt settlement company instead. Most of these companies renegotiate with the creditors on terms of payment. This way, you can get reduced interest rates on the debt or increased payment periods. In some cases, if you are diligent in payment, the debt can be substantially slashed off. They can also consolidate all your debts so that you end up paying one debt altogether at lower interest rates.
Taking a loan to pay off your creditors is another option you can use to pay off these debts. Some people take these loans from their 401k while others borrow from the banks and other credit card sources. Whichever way you choose, ensure that the interest rates are reasonable in your situation. As soon as you pay off the credit card debts, concentrate on paying off the loan to avoid wallowing in debt. You can also borrow interest free loans from your family, friends or employer. Use all the money given to pay up the debts and make a solid plan on how to pay off these people as per agreement.
Having a debt in excess of US $ 10,000 makes you eligible for a debt relief of up to 60%. You will need to prove that you are incapable of paying off the debt, thought. You will need to contact a credit card debt relief service in your locality, who will tell you how to go about this.
If all the above do not work, you can check with an attorney or credit counselor to see if bankruptcy can help your situation. However, this should be done, while considering the effects of bankruptcy on your credit report. Stick to the payment plan and avoid getting into more debt. Change your lifestyle by spending money on necessities and using the rest to pay off the debts. Once you have cleared all your debts, try living without credit cards altogether.