5 Tips for Eliminate Credit Card Debt Quickly

When a young trumpet player named Winton Marsalis met Jazz legend Miles Davis for the first time Winton confessed to him that he never knew how to end his solos. Miles' advice, "take the horn outcha mouth." The most obvious tips are sometimes the most helpful. If you're drowning in credit card debt consider these obvious and not so obvious tips for getting your head above water.

  • Eliminate bills
  • Lower payments
  • Decrease debt
  • Keep debt down

Here are 5 tactics you can begin using right away to trim your debt and keep it low.

1. Go Green. If you've got high interest credit card debt and you're only making your minimum payments each month it will take years to get out of debt. You've got to make a change. First stop using your credit cards and start paying cash. Hard to do if you don't have a lot of money coming in but it is the only way to begin turning things around. Pull your cards out of your wallet and (gasp!) cut them up. By only spending cash you will insure that your debt doesn't grow.

2. Open your piggy bank. If you have both savings and credit card debt consider how much of that savings you can afford to put toward your credit cards right now. It's tempting in a time like this with so much job insecurity to hold onto cash but if you're getting only a few percent a month on your savings and paying 15% or 20% on your debt you are throwing away money. See how much savings you can apply to debt while maintaining three months spending in case of an emergency.

3. Get another job. If you've got more money going out each month than coming in you're debt will continue to compound. Find a way to increase your income and apply it toward your debt. Consider taking a second job if you don't have one already even if it's only for a few months.

4. Consider payment protection. If you're concerned about losing your current job, talk to your credit card companies about a payment protection plan. By paying a few dollars a month now you will insure you won't have to make your credit card payments in the event you lose your income.

5. Consolidate your cards. By using one low interest card to pay off several high interest cards you can lower your overall debt. Find a new low interest card or call and inquire if one of your current credit cards has a balance transfer offer.

By consolidating your cards you will have:

  • Fewer bills and potentially fewer late fees
  • Lower interest rates
  • Lower monthly minimums
  • More money available to pay down principle

When choosing a low interest card for balance transfers be sure to find out the following:

  • What is the APR on balance transfers and how long does it last?
  • Is there a one-time transfer fee?
  • What is the APR after the initial offer expires?
  • What happens if I miss a payment is the offer still valid?
  • Is there a universal default clause that terminates the offer if I'm late with another card?

And of course the next time you reach into your wallet to pull out your credit card...remember Miles.

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