PostHeaderIcon How can I get out of credit card debt?

1. I have 6 credit cards that are closed to being at there maximum.
2. All the credit cards have a limit of $800.00
3. I would like to keep at least 3 of the cards with the best percentage rate.
4. The way the Internet is with so much dis-information, you can’t really figure out what debt consolidation companies are legitimate.
5. The Internet is hard to navigate for legitimate government programs that may help.
6. My finances consist of unemployment.

10 Responses to “How can I get out of credit card debt?”

  • Michael T says:

    It doesn’t quite work that way. As soon as the banks see that you are going into debt consolidation, default on any card, or settle a card for less, they will likely raise the interest rate, reduce the credit limit, or close your credit card account.

    There isn’t anything that the debt consolidation companies do that you can’t do yourself. Either the debt consolidation companies will withhold payments to your credit card accounts and pocket most of the money that you send them hoping that the banks will negotiate or just try to negotiate with the banks.

    You can do that yourself.

  • tychi says:

    First you need to put all of them away. Start to pay them off as best you can. Many banks have a list so you can review debt consolidation.
    Don’t spend any money you honestly don’t have.

  • Angel says:

    I think you have a lot of credit cards and the problem is complex now. So the best way is to get a bad credit loan and fix all these. May be you can get bad credit loan here.

  • Jaycee says:

    First, you need to check your interest rates. If they’re higher than 13%, call the credit card companies to see if they will lower them. In many cases, they will do it just to keep you as a customer.

    Then see if you can sign up for a credit card with a lower interest rate. For best results, get a card with a low rate that is good for the life of the loan. Then transfer the balances from your old cards to the new card, even if you have to pay a balance transfer fee. You may also be able to get a low-interest personal loan to pay off the high-interest credit cards. Shop around for the best rates and terms, and check your local credit union; their rates are usually better than banks.

    This is your best bet while you’re receiving unemployment, since it’s unlikely that you’ll have extra money to pay down the balances. However, when you do get a job, you should start paying extra on the credit cards. Paying even double the minimum payment will dramatically decrease the time time it takes you to pay them off.

    Meanwhile, be very careful about your spending. Don’t run up any more credit debt. If you have the discipline to keep your spending in check and pay the card off in full every month, use a separate card for groceries, gas and other necessary expendatures. Otherwise, use a debit card, checks or cash to pay your bills.

    The only government programs available to help people get out of credit card debt are government-approved credit counseling services. You can check the Federal Trade Commission ( or U.S. Department of Justice ( website to see which couselors are approved. If you get into serious trouble, you may need to contact a lawyer to help you obtain a settlement with the credit card company, but it doesn’t sound like you’re at that point yet.

  • says:

    First, no matter what you do, all of your cards my hike their rates, especially when you start missing payments.

    If you have not yet missed payments or are not substantially overdue (more than 10 days or so), then you should call your credit card companies and explain to them the situation. Most credit card companies can be lenient. Some may not be lenient, but most of them will be. Discover Card is infamous for not granting hardships until you are 3-6 months overdue.

    Are you talking about debt settlement? Without a job you will not qualify for a debt consolidation loan. As for debt settlement companies, DO NOT USE THEM. They will rip you off and take your money. There is nothing that they can do that you can’t do yourself.

    If you are unemployed and you cannot pay your debts, try to negotiate a settlement with your credit card company. They will usually settle for 30% to 50% of the balance owed. For an explanation of how to do this, see my simple guide on how to settle your debts yourself at

    As for government programs, THERE ARE NONE out there to help. You must help yourself.

  • TaylorProud says:
    Financial peace.

    They will NOT let you keep a credit card.
    IF IT IS TOO BAD BANKRUPTCY may be the best option,,you can keep your car and home if you can afford to or let it roll in bankruptcy and walk away from it, get it CASH car for cheap for awhile, no payments.
    My best recommendation is to READ Dave Ramsey, LISTEN to Dave Ramsey and Watch DAVE Ramsey….

  • Mia Jacob says:

    See the following options to find the solution that is best for you:

    ~Credit Card Balance Transfer
    A balance transfer is the simplest way to consolidate debts so you can find relief from numerous minimum payments that get you nowhere. If you decide to use a balance transfer, you must commit to paying more than the minimum on the new combined balance. To do this, total up all of the minimum payments on your previous debts. Now add an additional amount, whatever you can free up from your budget. Pay that entire amount to the new balance every month. With determination, you can probably pay off the entire balance before the interest rate offer expires.

    ~Credit Card Debt Consolidation
    If you owe more debt than you can reasonably pay during the balance transfer offer period, you should consider a debt consolidation loan. These come in two forms: personal and home equity. If you don’t own a home or your home doesn’t have equity, then you should apply for a personal debt consolidation loan. Interest rates are higher than home loans, but lower than credit card rates.

    ~Credit Counseling
    If you need help paying off your credit card debts, contact a local credit counseling service. The service will review your debts, income, and expenses, and work with you to create a payment plan. They may suggest a debt management plan. The service negotiates with your creditors to reduce your interest rates and set a fixed monthly payment. Once your debts are enrolled in the program, you no longer have access to the cards, which prevents you from creating new debt. In addition, you make a single monthly payment to the service, which then distributes it to your creditors as agreed.

    ~Credit Card Debt Settlement
    If you owe significantly more than you can pay, and can’t reduce expenses or increase your income any further, a credit counseling service may recommend debt settlement. Also called debt negotiation, debt settlement actually reduces your total balance due. The service contacts your creditors to negotiate a new lower balance and a new payment plan. You may either be required to make a lump sum payment or monthly payments. In most cases, debts can be reduced by 40%. Before choosing this option, remember that debt settlement may damage your credit and you may owe taxes on the unpaid amount.

  • debtairraid says:

    1. Go to

    2. Find a Financial Peace University Class in your area.

    3. Attend the class every week and follow the plan. Intensely!!!

    4. You’ll be out of debt in 12-18 months if you focus and follow through.

    I knocked out $40,000 in debt in 18 months. Best $100 I ever spent.

  • Reggie says:

    Increase your income and gradually pay down your bills. Don’t open up anything that isn’t current. Pay-off the current credit cards first then the old ones depending on who is will to negotiate..

  • Johanne C says:

    Do you really need 6 credit cards??? Cancel the ones that have the shortest history and keep at most three that have the best percentage rate.

    Secondly, stop using your credit cards first so that you don’t incur more debt on your cards. This will make it easier for you to pay off the balance. You’ll need to do some belt-tightening to live on a cash basis for now but the sacrifice is worth it. Spending less will help you avoid getting into even more debt.

    If you still think that you need to consolidate your credit card debt, you may find this site useful:

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