I Need Help Paying Off My Credit Cards

Getting ourselves into debt is such an easy thing to do that we assume that we can get ourselves out of debt just as easily. However, this is just not the case. Getting out of debt requires a complete overhaul of your financial life. It's OK if you decide you need help paying off your credit cards.

Look at Your Statement

Examine your credit card statements each month. Avoiding them is not going to make them disappear. Statements show how long it will take you to pay off your debt if you only make the minimum payment. Seeing this might be all it takes to get you to take action now instead of later.

Work With Your Creditors

Don't see your credit card companies as some evil conglomerate. They want their money, so they will likely be willing to work with you to get it. They may cut your interest rates or create payment plans to help you pay down the balance on your cards. If they do, find out whether the changes are permanent or whether the company is only extending the courtesy for a certain period of time.

Credit Counseling

Seek credit counseling. Credit counselors often provide a debt management program, which reduces interest rates to help you get out of debt within five years. The down side to credit counseling is that you will likely have to close your credit accounts, which can cause financial strain as you adjust to a life without credit. If you choose to go this route, be sure to seek an accredited nonprofit credit counseling company to ensure that your payments will go to the creditors and not to the pockets of an unscrupulous company.

Debt Settlement

Avoid debt settlement. It can help you get out of debt for less than you owe on your cards, providing short-term relief, but the long-term price is high. If you save for a debt settlement payment instead of making your monthly statement payments, you'll destroy your credit rating. In addition, you'll owe taxes on anything you settle, and your credit report will indicate that your accounts were settled outside of the initial terms, which can have as negative an effect on your credit as bankruptcy.