How to Solve Credit Card Debt

If you have credit card debt, you are certainly not alone. But, if you have a monthly debt that is 15 to 20 percent of your income, you have too much debt, according to CNN Money. Additionally, when you don't pay off your credit cards, depending on your interest rate, much of your money could be going to pay interest. It may seem like an insurmountable task, but you can create a workable plan to solve your credit-card debt.

Instructions

1

Make a list of all your credit cards, including store cards and gas cards.

2

Write down how much you owe, the interest rate and the minimum payment for each card.

3

Get a copy of your credit report at the Annual Credit Report website (see Resources) and make sure there are no mistakes on your report. You can receive a free report once every 12 months from the three major credit-reporting agencies, which are Equifax, Experian and TransUnion.

4

Call your credit-card companies and ask for a lower rate. Tell them that you have found banks that offer a lower rate than you are paying. Financial guru Dave Ramsey says that you should always ask. You have nothing to lose.

5

Pay off the cards with the highest interest rates first by paying as much as you can afford each month, making sure to pay the minimum on the other cards as well. As soon as you pay off one card, put it away and start on the card with the next highest balance.

6

Create a budget and stick to it. Many people get into credit-card debt because they overspend. Think of your credit card as a 30-day loan that you should pay back in full, suggests CNN Money.

7

Get professional help if your credit card debt is more than 20 percent of your income. Look for a non-profit agency such as the National Foundation for Credit Counseling (see Resources).