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How to Dig Your Way Out of Credit Card Debt?

Just the other day I was looking at a survey on CardTrak.com that stated the average credit card debt carried by American households was approximately $10,000. What was even more alarming was that 20% of the people who had taken the survey stated they had over 25,000 of credit card debt.

Unfortunately, we Americans have accepted credit card debt as a right of passage, and this is one reason why we and the economy are in such financial disarray. So many people are dealing with so much credit card debt that they barely have any room to save or prepare for the unexpected circumstances.

But does this mean we have to follow the new American Way? I didn't think so.

Follow these 6 proven strategies to reduce and control your existing credit card debt and you will see in few months who's following who.

The Highest Interest Rate Credit Cards Must Be The First To Go-Regardless how many credit cards you have, or how much you owe, figure out which ones are charging you the most to borrow. Once you find that out, pay those off immediately. With the average interest rates around 18% or higher, you can't afford to pay this high rates and get back on your feet.

Call The Lenders To Lower Your Interest Rates- If you see you credit score improving Try negotiating with each credit card company to lower your rate. Tell the creditors that your have been offered a better rate, and you're about to move your balance else ware! If they give you any resistance, call back at another time and ask for the shift manager. They usually can assist you better.

Use Home Equity Line-If you have a good amount of equity in your home, you could get home equity line of credit with a lower interest rate to pay off your credit card balances. Be careful using this method because many people have paid their debts with their line of credit, only to raise the balance of their credit cards again.

Close All Delinquent Accounts-You need to close all delinquent account before the creditor does. The top three credit bureaus do not look at closed accounts too favorably, especially if it was done by the creditor. When closing an account, do it in writing, and certify it via snail mail so you have a receipt of it.

Stop Paying Only The Minimum Balance- We have all done it before, you run you credit card balance up, and pay the minimum required balance at the end of the month. You're looking at this as a win-win, but this method might go down as of the best financial pigeon hole techniques every created by financial institutions. The longer your carry a balance, the longer you will owe the creditors. So believe me when I say creditors are not doing you any favors by giving you the option to make a minimum payment. If you follow this plan you should be able to start paying the total balance off every month.

Always Pay On Time-You already know the grave damage that a late bill payment can do to your credit score. The best and most efficient way to pay your bills on time is by using your online billing with your current bank. Most major banks and credit unions currently have some type of online bill paying system. Also paying on time avoids being smacked with useless fees and penalties.

BPaul shows people how to achieve financial success by writing articles about Financial Goal Setting and other personal finance topics.