So you’re up to your neck in debt, and you want to know how to get rid of it.  You know you should pay off debts that you have, but you’re not sure how to.  You’re not sure if you’re even able to.  And there are so many credit card debt relief options to choose from.  But you certainly want to settle your card debts and erase bad credit problems that are growing each day. So where to begin?

Settling Credit Card Debt – For Real!

If you want to clear debt – and settle credit card debt yourself without the help of a financial planner -you’ve got to be financially handy and responsible.  We recommend everyone who is in too deep in debt visits a financial planner; think of them as your primary care finance doctor to help you erase debt.

The first step is to evaluate how long it will take you to pay off.  If it will take you more than a couple years to pay off your debt, you may as well file for bankruptcy to wipe the debt clean.  Yep, that’s right.  Filing for bankruptcy is not necessarily bad, and it can be used to get you out of an even worse debt management situation.

If you can pay it off within a couple years, here is the way to do it:

How to Settle Credit Card Debt

Save an extra $200 per month when settling credit card debt.  I don’t care how, but do it.  Find some way to save that extra money.  Now, pay the minimum payment on all your credit cards.  This will ensure that your credit won’t get eaten up.  Finally, you’ll want to attach that extra $200 you came up with on to the credit card with the smallest balance.   Do not put it on the card with the smallest APR, unless of course, it happens to be the card with the smallest balance.

Once that card is fully paid up, take that minimum payment and extra $200 and put it on to your next smallest (now smallest) card.  Pay that one off.  Then, take everything you were paying on that card and put it on your next smallest card.  Do this all the way until you finish paying off all the cards.

This “snowballing” will help you pay off your cards much faster than spreading extra money evenly across all your cards, and it will be faster than paying the lowest APR cards down first.

Another age old trick by now is to transfer all balances to a 0% APR credit card.  Just make sure to pay it down before the rates rises again, and watch out for any potential o balance transfer fee if there is one.

Remember, though, don’t do this if your credit card debt is too overwhelming.  If it is too large try to negotiate credit card debt first, before even thinking about filing for bankruptcy.  Don’t be afraid of bankruptcy if your financial adviser recommends it.  It is easy to get back on to your feet in today’s world after bankruptcy, but don’t expect to get a credit card after bankruptcy or an unsecured credit card, without paying higher fees.