Getting Rid of Credit Card Debt - Getting Rid of Debt

Getting Rid of Credit Card Debt

If your credit card balance has crept up to uncomfortable levels, you're not alone. Millions of Americans have learned the hard way how easy it is to use and abuse their credit cards, and how difficult it can be to pay them off. Here are some credit card debt elimination tips.

• Always be aware of all of the fees that may be associated with your credit card. Know the annual fees, current interest rates, finance charges, cash-advance fees and any other fees tied in with your card. This knowledge can help you make better decisions on how to manage your card.
• Cash advances can be trouble. You should only get cash advances when it is absolutely necessary. Higher interest rates than you're paying for card purchases are usually charged, and most banks also charge a service fee related to how much cash you're withdrawing.
• Always be on the lookout for cards that offer lower interest rates. Transferring balances from one card to another to take advantage of low introductory rates is a common practice among U.S. cardholders. Low introductory rates can be very helpful in your quest to become free of credit card debt. You should look for credit cards that offer a low intro rate (usually for six months), and transfer the balance from your previous credit card to that credit card. Before you take this step, however, make sure that once the intro rate expires your new card will offer the same (or lower) interest rate as your current card.
• Pay more than the minimum required payment. Experts say that making minimum payments is one of the most common mistakes consumers make. You will save lots of money on interest and get to debt-free goals sooner if you pay more than what is required each month.

It's true that it's really easy to fall into the credit card trap, and not so easy to get out. But don't give up. There are nonprofit centers across the country that provide debt counseling and will even (at no or low charge) contact your credit card company and try to get your rate lowered or a different payment plan worked out.

For more information on credit cards and related topics, check out the links that follow.

Credit card acceptance varies around the world. In Europe, Mastercard and Visa are widespread and commonly accepted. American Express, Discover and Diners Club? Not so much. In addition, Most countries in Europe use PIN-and-chip technology, where your four-digit PIN is used to complete the transaction. Since the U.S. doesn't typically require a credit card PIN, you probably don't know yours. So make sure you do before going abroad. Asia is a different story. While Mastercard and Visa are also widely accepted here, the majority of small shops, bars and restaurants won't accept credit cards. Many credit card companies charge a foreign transaction fee so if you do a lot of international travel, look for a card that doesn't have this charge.

Originally Published: Nov 27, 2006

Related Articles

• How Credit Scores Work
• How Banks Work
• How Chip and Pin Cards Work
• How ATMs Work
• How does a magnetic stripe on the back of a credit card work?
• How does a security passcard work?
• How Identity Theft Works

More Great Links

• Better Business Bureau
• Consumer Action
• Federal Trade Commission Credit Report
• National Consumer Law Center

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