Get Out of Credit Card Debt

It's easy to pull out the plastic to buy something you don't really need or to fulfill desires now instead of putting purchases off until you can afford to buy them.

According to the organization, The Truth About Credit (www.truthaboutcredit.org), the average credit card debt for Americans who carry (credit card) balances is a whopping $10,000. As consumers struggle, credit card companies are making bigger profits than ever.

But, in spite of these grim statistics, 40 percent of Americans have no credit card debt. Want to join the ranks of the 40 percenters? Here's how:

Calculate how much you owe. If you haven't done so already, make three lists for each of the credit cards you have - balance you owe, interest rates, and minimum monthly payments. Sort the cards, putting the ones with the highest interest rate first.

Negotiate new rates. Rather than pay exorbitant interest rates, make an immediate dent in your debt by calling your credit card companies. Tell them you plan to move your money to another company with a lower rate, and you will find many customer service representatives are authorized to lower your interest rate significantly.

Use lower-interest credit cards. If one of your credit cards has a large balance owing and charges a higher interest rate than another of your credit cards, transfer the debt to the lower-interest credit card. You haven't eliminated the debt, of course, but because the interest rate is lower, it will not cost you as much. This is a one-time quick fix; if you make a practice of it, you will only dig yourself deeper into a hole. Do this only if you can see a real saving in interest during the period you will be paying off the total amount due.

Cut up the high-interest rate cards. Keep the two cards with the lowest interest rates and close the other accounts. If the credit card companies will charge you a higher interest rate on the balance if you close your account, wait until you pay it off, then cancel it.

Research low-interest cards. If your lowest interest rate is not in the 12% to 14% range, look for another one. They're out there.