According to IndexCreditCards.com, the average American is $4,013 in debt. The average household owes $7,861 on credit cards. No matter how much you owe, it is possible to eliminate credit card debt if you have a plan in place, are willing to make changes and are not afraid of small sacrifices.
Step 1
Figure out how much you owe to the last penny. Create a list that includes all your credit cards, including store and gas cards, and secure credit cards. List the interest rate, any yearly fees, the amount due on each card and other details, such as penalty or late fees, or other hidden extras.
Step 2
Examine your income to figure out how much you can dedicate to paying off your debt. List all your regular expenses (rent or mortgage, phone and electricity and other utilities) and don't forget groceries and other areas, even if you have to estimate a number. Then see how much money is left from your salary after paying off everything. This is the money you can allocate to pay off credit cards.
Step 3
Find ways to cut down your spending so you have more money to direct toward the debt. Small things such as eating out less, skipping the weekly manicure or leaving home early so you don't have to take a taxi can all save you money. Anything you can save should be applied toward your credit card number.
Step 4
Stop using credit cards. Budget your money so you can pay for everything with cash. You will be less tempted to overspend. Leave your cards at home when you go shopping. If you're using your cards, only buy things you can afford to pay in full when the bill comes.
Step 5
Call your credit card company and ask for a reduction in your interest rate or your total debt. Some companies will settle your debt in exchange for a lump payment. You may also ask to be forgiven late fees or other charges. Even if you only get a small discount, your debt will still be lower.
Step 6
Pay the minimum monthly payment to each credit card except the one with the highest interest rate. On this one, pay the minimum plus as much as you can afford extra, even if it's just a few dollars. Once the card is paid off, direct everything you were paying on it (minimum payment plus extras) toward the second card and so on down the list.
Step 7
Consider debt consolidation. If you simply can't keep up with payments and the card totals are increasing every month rather than going down, you may need to consolidate your debt. This way you'll only have a single payment every month at an amount you can handle. Debt consolidation shows up in your credit report, however, and it may lower your score.
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