Question: We need some credit card debt relief or even a settlement of some kind. We have looked at counseling to get out of credit card debt but our credit will be trashed when we are done. What steps or tips can we take to pay off and even eliminate the debt we carry on our credit cards. Heidi, Charleston, SC

Answer: Credit card debt follows many people with a wallet full of credit cards who also carry cards with high interest rates. Even with high rates the problem of credit card debt elimination can be tackled and the earlier the better. If the relief from debt is not attacked aggressively a small fortune in interest will be paid.

The credit card can be a useful tool but also a dangerous credit instrument. Without focus and regular monitoring of credit use the end result can be higher debt, out of control spending and years and years of paying on a slowly declining balance. When it comes to wiping out credit card debt – pay off as much of the balance as possible.

Lowering the balance will also lower the interest added each month.

Another simple solution is to pick up the phone.

Yes, pick up the phone and call the credit card company and ask for a reduction in the interest charged – do some negotiation! Tell them you will close the account and move the balance to another company. Do not only pay the minimum amount. Stop charging and pay as much as you can on the balance each month.

If the minimum payment is to much pressure because of too many credit cards to pay on each month consolidating the debt may be the best option to stop the bleeding and manage the debt repayment.

Debt consolidation can help reduce multiple payments, concentrate all the money on one monthly bill and reduce the risk of any possible late payments. It may also reduce the amount of time you will be repaying on the debt.

You may want to consolidate the high interest, costly credit card debt and make it more manageable and affordable!

Unsecured Consolidation Loan

A unsecured loan to consolidate debt can be an effective way to handle small, high interest cards and store credit cards. Income, financial position, assets and credit score. Consolidating all these debts into a smaller fixed monthly payment. You’ll need decent credit to gain the real benefits of unsecured consolidation loans.

Secured Consolidation Loans

Consolidation loans allow borrowers to secure money to pay off debt by tapping into the equity in a home. You must be a homeowner or property owner in order to take advantage of these loans. The ability to borrow greater sums of money on secured loans is higher than unsecured loans making them a powerful financial tool. The equity in the property is often the limiting factor in the loan level.

0% Balance Transfer Credit Card

Consolidate credit card debt on another credit card may seem like an odd way to reduce debt. However, using a 0% interest balance transfer will give you a period of time to pay down the total card balance with NO INTEREST. Usually you can transfer the balances from as many credit cards as you want to the new card up to the credit limit on the new card. There is usually a transfer fee of 2-3% of the total amount being transferred to the new card. Make sure you factor this in your calculations.

Life of Balance Transfer Card

If paying off the balance on a 0% balance transfer credit card does not look like it is a possibility a life of balance transfer card maybe an option to consider. These cards let you transfer the balance from any existing credit cards up to the specified limit. Another plus, you’ll be able to enjoy a lower monthly interest rate on the transferred balances than on the 0% balance transfer cards. But, you must be able to pay the minimum amount, take as long as you want and usually there are no transfer fees. To pay off credit card debt you do have some options. To get results you must take action to see results.