Calculating Debt

• Before devising a strategy to tackle your credit card debt, grab your most recent statements and add up how much you owe on each card. Knowing how much you owe helps you create a pay-off strategy. Once you have a total in mind, you can decide how much you need to spend each month to eliminate the debt.
  
  

Look at Your Interest Rate

• Examine the interest rate that you're paying on each card. Call your creditors using the customer service number and ask them to lower your interest rate on the card. This method helps get rid of credit card debt faster because paying less in interest charges each month knocks down the outstanding principal quicker. Creditors aren't obligated to lower your rate; and if they don't, start shopping around for lower interest rate card and then transfer your balances.
  
  

Create Disposable Income

• Modifying your spending habits and lifestyle helps increase your monthly disposable income. With extra money in your pocket, you're able to pay down your credit card debt quicker. Cut back on non-essentials such as dining out or clothes shopping. Review your budget and determine how much you have in disposable cash after paying your monthly expenses.
  
  

Minimum Payments

• Take your disposable income and make higher payments on your credit cards each month. For example, if you have $250 extra each month, stop sending the $25 minimum and increase your payments to $250 a month. If you owe $2,000 on a credit card, this higher payment can pay off the debt in about eight or nine months. You'll pay less in interest, and you'll pay off the debt in less than one year.
  
  

Control Spending

• Eliminating credit card debt involves spending less with your plastic. Balances will continue to increase if you use credit instead of cash. Stop carrying credit cards in your wallet, and only spend when you have the available cash. If an emergency arises and you must use a credit card for a car repair or medical bill, plan on paying off the new charge within a couple of months.