Credit card debt afflicts millions of Americans and, if left unchecked, can cause permanent damage to one's financial status. Getting out of debt often starts with consolidating your credit card payments so you have one monthly bill to keep track of. That allows you to plan for the future more readily and pay down your credit card debt in a timely fashion. When coupled with common sense, steps such as paying more than you owe each month and cutting down on credit card expenditures, make for a simple solution to eliminating debt.
One Card
If you have several credit cards with outstanding debt, try to transfer the amounts to one card. Find out which one has the lowest interest rate and whether you can transfer the whole debt to it, or look for a new card with a low introductory rate that won't expire before you can pay off the debt. Many credit card companies offer balance transfer specials, making it easier to consolidate your debt with them. Once you've transferred your debt, cancel the other cards and cut them up; that will prevent you from generating new debt as you work to pay off the existing debt.
Another Loan
When credit card companies won't help, consider taking out a loan from another source. These sources often offer lower rates than those of the credit card companies, and fixed payments every month mean you can plan for the future more confidently. Common loans for dealing with credit card debt include home equity loans from a bank (which borrow against the value of your house), loans from credit unions and personal loans from family and friends. When considering such loans, be sure to borrow enough to cover your entire credit card debt, and get a loan with a fixed interest rate, if possible, so you know how much you still owe on it.
Tapping Other Resources
If you have any other resources that you can use to consolidate your debt, they may be the most preferable option. The most obvious sources are pieces of property such as boats or vacation homes, or existing bank accounts such as savings accounts. You may also be able to borrow against a 401k plan, a life insurance policy, or funds planned for your retirement. While you won't have access to those resources in the future, neither are you losing money on the interest payments to your credit cards, which is the principle purpose of credit card debt consolidation.
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