Do You Have Too Much
Credit Card Debt?

They come in every color of the rainbow, show up at stands outside of bookstores, or right in your own mailbox, and offer temptations that seem irresistible. Credit cards woo millions of Americans into a continual charge-pay-charge cycle every year. It's much easier to whip out your credit card for that impulse buy than it is to wait, budget, and save. Patience is a virtue, but it's also a challenge.

Those sparkly little plastic rectangles can lead to debilitating credit card debt, and that credit card debt is generally accompanied by the highest interest rates on the market – as much as 30 percent. When all is said and done, that sleek new jacket could cost up to 150 percent or more than you actually would have paid in cash.

Obviously, the best way to manage credit card debt is to avoid it altogether. But if you already have more than one credit account, you'll need to devise a plan to whittle down your overall debt. To do so, the first step is to stop using the cards. You can't build credit card debt if you've cut up your credit cards or filed them away out of reach! Next, adjust your budget to pay as much as you can on the highest interest card. When that balance is zero, move to the next highest, and so on.

Try to further reduce your credit card debt by negotiating lower interest rates. Call customer service and inform them that you were offered a lower rate elsewhere. Reassure the rep that you would like to stay with their company, but are tempted to move your balance to the lower interest card. Sometimes the thought of losing your business – and thousands of dollars in interest – can prompt a generous rate cut.

Once you're free from credit card debt, retain one card for emergency use only. Put the card in a safe place at home – not your wallet – so you won't be tempted to use it unnecessarily.

If you have over $10,000 in credit card debt, see how much money we can save you. Start here