- 1). Organize your outstanding balances. On a sheet of paper write down the names of all your creditors, the amounts you owe and the interest rate on each credit card.
- 2). Deal with credit card interest rates. Convince creditors to reduce your interest rate by emphasizing your good history with the company. Mention rates that you've received from competitors, if applicable, and ask your company to offer a similar rate. A low rate reduces the amount you pay on interest each month.
- 3). Stick to cash. Under no circumstances pull out your credit card when paying off your debt. Paying down the card and reaccumulating debt continues the cycle. Place credit cards in a bowl of water, and then freeze the water to help control debt.
- 4). Use extra income to wipe out debt. Do a self-checkup of your finances and spending habits to see if you can reduce costs. Eat out less, do less shopping or get rid of unnecessary monthly services. Reducing spending may create an additional $100 or more a month.
- 5). Liquidize your personal savings. Tap into personal savings accounts, life insurance policies or retirement savings to wipe out credit card debt.
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