Six Tips to Escape Credit Card Debt

Here are some tips to help you stay out of debt with credit cards:

1. Pay Monthly Balance - The first sign of credit card problems is failure to pay your monthly balance which can result in fees and interest charges piling up quickly. If you avoid spending more than you can afford and pay off your balance regularly, you will never find yourself in trouble in the first place.
   
2. Pay More than Minimum - Those that can't afford to pay off their entire balance should at least pay more than their monthly minimum in order to reduce the principle amount that you owe and avoid further compounding interest charges.
   
3. Find a Solution Quickly - Credit card debts that are out of control may require further intervention from credit card issuers or even debt assistance companies. If you cannot afford to pay off your credit card, simply call up your credit card issuer and request that they lower your interest rate or you will transfer your balance to another issuer that offers a better deal.
   
4. Transfer to Lower Credit Card - Some credit card issuers offer low introductory rates that can allow you to pay off your debts more easily. You can transfer your existing balances to these new credit cards.
   
5. Consolidate Your Debts - Unsecured debts can be difficult to overcome and may require debt consolidation in order to escape. There are two main forms of debt consolidation: credit counseling and debt settlement. Credit counseling will let you pay off your entire debt in a new plan negotiated between you and representatives of your credit card company. Debt settlement involves a third party working to reduce the total amount you owe and setting you up on a payment plan.
   
6. Use Home Equity - Home equity loans offer interest rates far below that of credit cards and other loans. Therefore, many people use their home equity loans to pay off their credit card balances in whole and then pay off the home equity loan at a lower interest rate.