by CE Wynn

Created on: January 27, 2008   Last Updated: April 24, 2010

If credit card debt is concerning you, the best thing to do is try and eliminate the balance, because interest incurred is waisted money you could have spent somewhere else. Here are a few tips in managing and eliminating your credit card debt.

1. Your Attitude

If you have a large credit card debt, first look at your attitude towards having debt. If you think debt is just a necessary evil and you will always have it. Your wrong, change your attitude now.

Credit cards are not needed, society has brought on this requirement to have material possession now, rather then saving and getting them later.

Be warned if you don't change your attitude, and keep living above your means, a time will come when you will no longer be able to afford the repayments and you will run into serious problems.

2. Consolidate

If you have more then one credit card, look at consolidating the balances into one account. This will make it easier to mange your accounts and keep track of how you're travelling with reducing your credit card balance.

When looking at consolidating your credit cards, research and look at other credit cards that may be available. Ask the following questions:

  - What's the interest rate?
  - What are the upkeep fees?
  - Is it better then my other credit cards?

When transferring your credit card debt to another card, offers such as interest free periods are a great bonus when changing cards. Try to stick to the one card, continually transferring debt around by applying for new cards can affect your credit rating.

If you find that you lack discipline and can't help but use your credit card, it might be worth while chopping your cards up before using them again. Alternatively, look at getting a personal loan to cover the full balance of any outstanding debt. Although the repayments will be higher, these repayments will pay off both the interest incurred and principal balance of the loan.

3. Know Your Credit Card

Can you answer the following about your credit card?

  - What's your balance?
  - What's your limit?
  - What are the upkeep fees?
  - What's the interest on purchases?
  - What's the interest on cash advances?
  - Is there are interest free period, and does it apply to cash advances.

Answering these questions will assist knowing how to best use the credit card, minimise interest, and if necessary search for a better credit card.

3. Payments

Sticking to just the monthly minimum repayment, will not pay your credit card

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