by Raven Lebeau

Created on: March 12, 2009   Last Updated: March 20, 2009

Credit card debt is a fact of life for numerous people. When an unexpected bill or a sudden loss of income occurs, a credit card is often the only way to deal with the resulting financial crisis. Paying off that debt, however, is an important step toward financial freedom. Of course paying off your debt will require some time and self-discipline, however there are some very real strategies that can make it happen sooner and with less effort.

1. Consider debt consolidation or transfer to a lower-rate card.

The interest rate on your credit card has a significant effect on your ability to pay off the balance. To see the effect of interest rate, try using the credit card calculator at Bankrate.com. Consolidating your debt with your mortgage, taking out a home equity loan, and finding a lower rate card are all options than can help reduce the time it takes to become debt free.

2. Try to negotiate a debt settlement yourself.

A debt settlement is an arrangement in which you pay off a portion of the debt and the rest is forgiven. Many companies offer "debt settlement services," offering to negotiate with creditors for you. However, many of these companies, even those that describe themselves as "non-profit," charge outrageous fees. Some debt settlement organizations are outright schemes and will charge a fee but never make a call to the credit card company.

Instead of relying on a debt settlement company, try contacting the credit card company yourself. Explain that you are in danger of bankruptcy and offer to pay off a portion of the balance. This usually only works if you actually have a substantial portion of the balance available to you; most debt settlements involve a single payment of a lump sum, though there are exceptions in which creditors will allow you to make a series of payments of a short period of time.

3. Stop adding to the problem.

You can't change the past events which incurred the debt, but you can avoid increasing it further. Avoid making any unnecessary purchases. Stick to the basics such as groceries and necessary medical care. Try to pinch pennies when it comes to groceries. Save on heating and cooling by turning your thermostat down in the winter and up in the summer. These small changes will mean having more of your paycheck free to apply toward your credit card balance.

4. Delay purchases as long as possible.

Sometimes you genuinely need to make a home or auto repair. It may be necessary to update your wardrobe for career reasons. However, holding

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