How to Get Rid of Credit Card Debt Legally

Large credit card debts are stressful. Paying off credit card debt requires creating a plan. You must also focus on changing behaviors that may have played a role in accruing the debt. Taking steps now, such as creating a budget, cutting costs and working directly with creditors to arrange payment plans will help you get rid of credit card debt legally.

Instructions

1

Create a realistic budget. List all current income in one column. In the other column, list all monthly expenses. Any money left over should be allocated to paying down credit card debt.

2

Look for ways to cut costs. Evaluate your monthly budget. Look for categories that can be reduced. For example, if you're spending a lot of money on transportation, consider carpooling or public transportation. Use the money saved to pay down credit card debt more quickly.

3

Talk with your creditors. Accounts that are in default status should be taken care of right away. Ask the creditor to arrange a repayment plan to make the debt more manageable. Also look for credit cards with lower interest rates. Transferring credit cards to low-interest balance-transfer offers allows you to pay more towards the outstanding principle. Many card issuers will lower your interest rate at least temporarily if asked.

4

Evaluate behaviors that contributed to credit card debt. For example, if you struggle with impulse purchases, keep your credit cards at home. Freezing your credit cards is another way to avoid impulse purchases.

5

Contact a credit counseling program if you can't seem to get credit card debt under control. These programs are available at credit unions, housing authorities and universities. A credit counselor can help you create a realistic plan to get out of debt for good.