Business & Finance Debt

How to Eliminate Major Credit Card Debt Legally

    • 1). Calculate the total amount of debt that you owe for all of your credit cards. Gather your current credit card statements and make a note of each outstanding balance.

    • 2). Add the outstanding balances from each statement together to determine the total amount of debt that you owe.

    • 3). Stop using the credit cards with the highest interest rates. You will not continue to add to the outstanding balance once you have stopped using the cards.

    • 4). Attempt to consolidate the debt of multiple credit cards. Move balances from higher-interest cards to a card with lower interest. Once the balance of the high interest card has been moved, you can then cancel the account.

    • 5). Contact a credit counselor or agency and set up a debt management plan. You can find a credit agency through the National Foundation for Credit Counseling. This will allow you to make a monthly payment to the credit agency who will then make a payment to your credit card company.

    • 6). Put any extra money that you can save towards your credit card debt. This can include tax refunds, money from a part-time job or proceeds from a garage sale.

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