Eliminate Credit Card Debt

When you are looking to eliminate credit card debt there are several steps you can take before you file bankruptcy. Bankruptcy should be the ultimate last resort to eliminate credit card debt.

Likely, you got into credit card debt in part because of the high interest rates on your credit card balances. Begin to eliminate credit card debt by calling the credit card company and asking them to lower your interest rate. Many companies will do this rather than taking the chance on your not paying the bill at all. If you don't want to make this call, there are many companies who will make the call for you.

Always pay more than the minimum balance due when trying to eliminate credit card debt. The minimum amount due is merely interest, leaving the principle balance the same, accumulating more interest.

Don't think you can afford to lose your savings? Surely you are losing more money to the 17% - 21% interest on your credit card than you are gaining on that .5% - 5.5% interest earning savings account. You can rebuild your savings after you eliminate credit card debt.

If you own your own home consider applying for a a home equity loan to eliminate credit card debt. Generally the interest rates on these are much lower than a credit card. Additionally, the interest rate on your home equity loan is tax deductible, like that of your mortgage. With these you can eliminate credit card debt and save on your taxes.

There is the possibility of borrowing from family and friends to eliminate credit card debt, but this is a difficult situation and should be the next to last resort.

You can do it. Eliminate credit card debt and give yourself a fresh start.