Credit card debt is a problem that plagues most Americans at one point or another.  Whether you have a small debt on one card, or large debts spread out over many cards, there are ways to take control of your situation and get out of credit card debt once and for all.

Stop Charging and Spending Needlessly

The first and perhaps most important step to getting out of credit card debt is to stop using your credit cards immediately.  Use cash for all necessities and wants.  Look over your budget to see where you can make cuts if necessary.  If you find that you are charging basic needs each month, take a hard look at how you might change your lifestyle in order to live within your means.  Depending on the severity of your situation, you may need to sell extra vehicles, get a part time job, or go without cable or long distance for a time.  Remember your ultimate goal: to pay off your credit card debt and to live within your budget.

Call Your Credit Card Companies

If you have been a good customer and have paid your bills on time in the past, your credit card company might be amenable to lowering your interest rate.  If they are not, you might be able to switch your balances to another card with a low interest rate, or even one with no interest due for six months to a year.  This will give you time to make payments that are applied only towards the principal amount owed, and not a high interest rate.  Not all banks and lenders are open to lowering your rate, but it never hurts to ask.

Make a List of Your Debts and Pay Them in Order

Make a list of what you owe on each card, and what interest rate you’re paying on each one.  Put the list in order of amounts owed, with the lesser amounts toward the top of the page.  If you have several bills, put them in order of the highest interest rate to the lowest.

Each month, pay the minimum payment on all but the card listed on the top of the list.  For that card, add as much onto the payment as you possibly can.  If you can pay $25 over the minimum payment per month, for example, you will slowly whittle away that balance.  When the card on the top of the list is paid off, start working on the next card on the list.  The new payment for that card will be the minimum payment, plus what the minimum payment was on the card that you paid off, plus the $25 extra that you were applying to the first card.

Call Your Credit Card Companies Again

Once you pay off a card, call your lender and have the card canceled.  Keep only one credit card for emergencies, and cancel the rest.  Even if you don’t use the cards, open accounts will negatively impact your credit and they can make it harder for you to purchase a car or a house in the future.

Once you have all of your credit card debt paid off, be careful not to get into the same situation again.  Only charge what you can pay off each month, and be diligent to do so.  If you don’t know if you have the discipline to pay off your balance each month, keep your card in an area that is inconvenient to access, or consider not having a credit card at all.