Keep Your Credit Card Debt in Check

Do you know the best way to control credit card debt (other than not using your credit card)? There are actually a lot of ways to control it. For example:

• Freezing your cards in a glass of water! Sounds crazy, yeah, but think about it--if you had to go home and thaw your credit cards out to buy something you saw in a store window, then go back out and get it, would you really take the time? (And when you freeze your credit cards, you can't do it in the microwave!) Talk about putting your impulse purchases on ice!
• Remind yourself of goals (like a house or a car) by cutting out a picture of a house or a car from a magazine or catalog and wrapping it around your credit card as a reminder of what you're saving for. Maybe you'll decide you really don't need that new sweater, CD, perfume...whatever!
• Set up a matching system. Whenever you use your credit card, transfer the same amount of money to a savings account. That way you have enough money to pay your bill in full at the end of the month. Eventually, you might start using cash or curb your credit card spending altogether.
• Use your credit card company's alert system. This will let you know (by email or cell phone) when you're about to surpass a certain amount that you set.

All of these are excellent ways to control your credit card debt. But what if your credit card debt is out of control? There's lots of help for that too!

When It's Gone Too Far

When it's too late to actually control your credit card debts, there are some things you can do. If your credit hasn't suffered, you can try transferring your credit card debt to a 0% balance transfer credit card. Generally, the 0% APR is only an introductory rate though, and you want to make sure there's no annual fee and no balance transfer fees. If you can get it all paid off during the introductory period, you've found the best way to eliminate credit card debt.

But if your credit has taken a hit or two from all your credit card debt, you might have to turn to a professional debt management program. There are four that deal with credit card debt:

• Debt consolidation
• Debt consolidation loans
• Debt consolidation mortgages
• Debt settlement

To find out which one you need, contact a debt management company. Most of these programs will get you out of credit card debt in about five years, and they all function on reductions--most in interest rate, but some on fees and balances too.

All material COPYRIGHT © 2008 Debt Showdown. All rights reserved.

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