How to Reduce Credit Card Debt

Credit card debt should not only be reduced, but also totally eradicated before it becomes too big to manage. While reducing credit card debt is as easy as paying off the bills on time, many people are unable to get it done, owing to which they get deeper into debt.

Avoid Credit Cards

Avoiding credit cards is such an easy method of reducing credit card debt that it is almost funny. While many people do not need credit cards, many others find it difficult to survive without one. Such people might discard all credit cards except one. They might also like to entrust this credit card to a trusted person or hide it in a safe place for use in an emergency. However, this simplest of all rules on reducing credit card debt is also the toughest to follow.

Instead of using credit cards, you can use cold hard cash. People usually hesitate to purchase anything they do not want when they have to pay in cash because it reminds them of all the hard work that went into earning all that money. In other words, you are much more careful about spending when you pay for things with cash, instead of pulling out your credit card all the time.


Many people who find themselves deep in debt are unable to create an effective budget. Armed with their credit card, they spend excessively and panic when they get into debt. Although convenient, a credit card is the worst thing that a spendthrift can own. Since credit card limits are usually set to twice or more than twice people’s salaries, people tend to spend more than they can afford. All credit card holders should, therefore, discard all credit cards they own except one and stick to an effective monthly budget.

Balance Transfer

One of the top ways to reduce credit card debt is to transfer your balance from a credit card with high APR to a credit card with low APR. A number of credit card companies have offers such as 0 percent on balance transfers for the first few months. This assists credit card holders to reduce their credit card debts.

Check out the interest you are paying on your credit cards and request your credit providers if they can either cut down the rate of interest or offer you lower rates if you transfer the balance. You can also apply for credit cards that offer low or zero rate of interest for the first few months.

Paying off Debts

It is now time to start paying off those credit card debts, and the best way to do this is to make payments that far exceed the minimum. The good habit of budgeting and living frugally till you are debt free will help you a great deal.

You should never hesitate to take professional help such as credit card debt counseling or credit card debt consolidation loans if you find it very difficult to deal with credit card debt on your own.