Credit card debt reduction became a necessity because it was one of the biggest debts I had – and it seemed like credit card companies that I owed money to would never stop calling. Perhaps you have also experienced that – if not, you aren’t missing anything exciting. Here are some things that had to be done for me to escape out from under the credit card debt that I had.

The Determination Needed

Some people seem to tolerate the fact that they are in debt. It is this attitude of toleration toward debt that will keep many people there. You will not be able to get real credit card debt relief until you can say – “I hate being in debt all the time and not being able to do what I want with my finances when I need to.”

If you stop to think about it, you will realize that with credit card debt, you are still paying for things that are long gone. Those things lost their thrill quickly, or were broke, or just plain wore out – but you are still paying for some of them. Not only that, but with the interest included, you actually paid far more than retail prices on each of them, too. This means it was not such a good investment.

It will take some major determination to do what it takes to eliminate your credit card debt. It will take a change in the way you live and spend your money.

Checking Out My Options

Being determined to pay off debt meant that everything – my spending habits – use of extra money, etc., would all have to go toward removing the debt. I started on my journey toward credit card debt solutions by taking inventory of where my money was going now. After evaluating all my bills, and my spending, I quickly discovered that there were a lot of holes that my money was disappearing into – just being wasted on frivolous things, and things that I could do without.

This included a lot of eating out – which I could not afford, making a lot of trips, buying a lot of junk food, etc. I also found a lot of places where I could save some money, too. Simply by following tips that are available everywhere, I saw that I could reduce some of my utilities, my extra services (cable or dish) – I did not have to have the best programs they offered – basic services were good enough, and I could turn down my thermostat a degree or two during the day and a few degrees at night. This would enable me to have more money to pay down that credit card debt – and I was not going to charge anything else, either.

Approaches to Removing Debt

In my search for workable solutions, I found that there are a couple of approaches that will be helpful to you to get out of credit card debt. I will mention two of them here. It is possible even that some people may be able to use some combination of both of them and others will only be able to use one or the other. Here is an overview of them and how they work.

Balance Transfer Credit Cards

Balance transfer credit cards can enable you to get 0%APR for up to 15 months. Due to a tighter economy, however, it will be harder – possibly impossible – for some to get a new balance transfer credit card. The benefit of no interest for a year is a tremendous way to save some money. You can transfer balances from other credit cards to it, and it often is free. Some credit cards, however, will charge you up to 4% for the privilege.

This method can be very effective if you can transfer all of your credit card debt to the new card. If not all of it, then transfer at least the balances from the credit cards with the highest interest rates. Once this is done, you keep on paying the same amount, and since there is no interest, your debt is reduced at a much faster rate. It would also be a good idea to cancel the extra credit cards (at least most of them) so that you don’t have the temptation to fill them up again with new purchases.

One problem, though, will occur if you make any payments late. Some credit card companies are now raising interest rates to over 29% for just one late payment. Be careful if you use this method.

Snowball Effect

Another method, more recent, has been termed the “snowball” effect. This method calls for paying off your smallest debt first, which, once that is paid, it gives you more money to put toward your second smallest debt, and so on, tackling them one at a time. While you are doing this, you always want to be paying the minimum due on each of your bills.

While there seems to be slightly different versions of this out there, it makes the most sense to tackle the debt with the highest interest first. If this is your largest bill, though, you may want to pay off a smaller debt if you can do it quickly, and this will quickly free up more money to give you greater credit card debt relief.

In addition to the two above potential solutions, you may also want to consider selling things that you have a lot of debt on – if you do not think you can maintain the bills comfortably. Sometimes, it may be better just to reduce other debt – such as exchanging a new car for an older model, a boat or Jetski you can’t afford, etc.’

A Matter of Concern

While it is important to pay off credit card debt, you do not want to put all extra money in the debt reduction basket. Don’t forget that emergencies can still happen unexpectedly, and this could leave you in even worse financial shape. You need to be building an emergency fund as a bailout, of at least $1,000 – but two month’s worth of income would be better, to help you survive those difficult places in life.

Once free of that credit card debt, you will feel a degree of relief you may not have known for a long time. Being free of creditors is a tremendous feeling – you will want to enjoy it for as long as you can.