What to Do for Credit Debt

On their own, credit cards are harmless. The problem can begin for an individual once she begins spending beyond her means. If a consumer does not practice care, credit card debt can quickly add up. When armed with perseverance and a plan to eliminate debt, a debtor can gain control over her finances.

Paying the Balance in Full or Installments

If credit card debts are small, it may be to an individual's advantage to pay the balance in full. This technique can help avoid interest rate charges. If the total balance on a credit card is more than an individual can afford to pay all at once, he can consider paying more than he owes for the minimum payment. Making larger installments toward credit debt in lieu of just the minimum payment will help a customer pay the credit debt faster.

Paying Twice a Month

If an individual cannot afford to make more than the minimum payment due on a monthly credit card bill, she can consider splitting her monthly payment in half. By making a half payment every two weeks, the credit card company will apply more of the money toward the principal balance and less towards interest. If a customer decides to choose this method of payment, she should discuss it with her credit card company and make sure the company receives the full amount due every month by the due date.

Paying the Smallest Debts First

It may be tempting for a debtor to try to pay off the largest amount of debt first to get it out of the way. However, financial advisor Dave Ramsey states consumers should focus on paying off the smallest amounts of debts first. This way, they can later use the extra money he has toward paying off the larger credit debts faster.

Assistance from Credit Card Companies

Credit card companies generally prefer to receive smaller customer payments than no payments. When a customer experiences a financial hardship and she cannot afford to pay the minimum amount due on a monthly credit debt, she can try directly contacting her credit card companies. By explaining her financial situation to a customer service representative, she may be able to enroll in a credit card's assistance program. These programs help customers by reducing interest rates or reducing the minimum amount due each month.