What is the best way to get rid of credit card debt?

Hi All. I%26#039;m a recent college grad who is fairly new to the workforce and is ready to get rid of her credit card debt!! I was fortunate enought not to borrow much in student loans (a total of about $9,000), however by grad time I owed about 9 thousand in credit card debt. Now I am ready to get rid of this burden. I know that this sounds horrible, but my situation was very different than that of the average student. I am a mother and was raising my daughter the whole time during college. Instead of working full time I focused on my studies and only worked part time. Needless to say this made everything harder but in the end it was worth it. Also, I%26#039;m not looking for an overnight solution. It took me six years to accumulate this debt so I know it wont disappera overnight. I%26#039;m just looking for the best way to go about it. Please help!

What is the best way to get rid of credit card debt?
The amount of people throughout the United States who find themselves in debt continues to rise. For you, raising a child while being a college student made your financial a difficult one. For most, however, debt is the result of extraneous spending, poor money management, or both.





Below is a list of ten tips to getting out of debt. Some are easier to follow than others, but all are designed to help alleviate the problem - so take comfort in the fact that you can solve your debt, though it will be a tough process...





Ten peices of advice from allbusiness.com:


1. Create a realistic monthly budget for your expenses. List all monthly bills and necessities and make sure they are covered by your monthly income. Allow only the money remaining after the bills are paid to be spent elsewhere. Stay within your budget guidelines.


2. Pay off the balance on the credit card with the highest interest rate first (unless the balance on any card exceed 50 percent of your credit limit). First, pay all balances to below 50 percent of the card limit because balances above this level cause your credit score to diminish. Then pay off the balance on the credit card with the highest interest rate. If the account was opened within the past year and you have additional older accounts, close it after it is paid off. Next month do the same with the card that has the next highest interest rates. Continue until you reach the credit card with the most favorable terms (i.e., low interest rates). Use this as your preferred account. You need only four open accounts to establish a positive credit history.


3. Learn to use cash instead of credit cards. Have one primary credit card and use it only for emergencies or major necessities, such as a new refrigerator if the current one stops working. Put your credit card in a safe place, not available for everyday use. Also, do not accept increases on your credit card limit above an amount you can easily pay off in three months.


4. Use direct deposit for your paychecks. Also have a limit on how much you will allow yourself to withdraw each week and month.


5. Cut down on your discretionary expenses. This includes dining out, overusing your cell phone, and other such unnecessary expenses.


6. Evaluate your living situation. Your housing costs should be no more than 33 percent of your household income, including mortgage payments, property tax, and both property and homeowner%26#039;s insurance. You can shop around for lower insurance rates, refinance your home mortgage, and look for more economical utility plans.


7. Avoid borrowing money to get out of debt, especially consolidation loans. Many people think this is a way of helping them get out of debt. However, consolidation loans are simply a means of combining debt. You could end up losing everything because you’ve tied it all up in one loan. If you must borrow, see if a friend or family member can lend you money, since the interest rates should be low or nonexistent.


8. Contact your creditors and try to work out repayment plans. Many creditors are willing to work with you in a manner that will help them get their money without having to resort to debt collectors.


9. Become a savvy shopper. Look for deals, bargains, and savings. You’d be surprised at how much you can save if you take the time to shop around. Check out the price comparison Web sites such as Shopping.com and BizRate.com.


10. Look for extra ways to make some money. From part-time work to a garage sale to taking in a boarder, there are many ways to bring in some additional income.





If all else fails, seek out help from a debt reduction specialist or counselors [see link below] who can help you formulate a plan for getting out of debt and staying out. Just make sure that you check out the service in advance. Many companies are simply taking advantage of people in debt and charging them high service charges.





For MSN Money%26#039;s take on credit card debt, follow this link-


http://moneycentral.msn.com/content/Bank...





For more advice, these are also helpful allbusiness.com links-


Should I Borrow Money to Get out of Debt: http://www.allbusiness.com/3915481-1.htm...


To Get Matched with a Relief Specialist:


http://www.allbusiness.com/3776688-1.htm...





Good luck in climbing out of debt. Try to modify your personal finance outlook in doing so, and you should be well on your way.
Reply:I would consolidate it with a company at a low interest rate. If you can find something where you have a set monthly payment for 5 years that would be nice. Then you can treat it like a car payment or any other bill you have.
Reply:You are lucky in the fact that it is only $9000. Dont%26#039; consolidate, you%26#039;ll end up paying more in interest in the end. Take it one card at a time. Pay the smallest balances off first. Pay more than the minimums. A good rule of thumb is take your finance charge for that card for that month and double it. That way you are paying the principal plus the interest. Before you know it, you will have it paid off.





Good luck.
Reply:there is a song that goes like this:





if you see something you want and you know you can%26#039;t afford it, the very next thing for you to do is start saving towards it.





1) transfer to it to an interest rate of 0.00% (see link #1)


2) put as much as you can possible afford each month, NEVER the minimum!


3) transfer it to another card when the first rate of 0% runs out! i did this to start a business in which i needed about $40k, i have yet to pay ANY interest 7 years later!
Reply:Uh, pay it? Or is that too simple of an answer.





So what you%26#039;re saying is, you charged stuff and now don%26#039;t want to pay for it. What%26#039;s the difference between that and just going into the stores and stealing it directly?
Reply:First cut all of your credit cards in half.





Second pay as much as you can every month. At least twice the minimum payment.
Reply:pay it
Reply:i would see a debt counselor or consolidator. either way see a professional for the best advice. first advice is to rip up the credit cards.
Reply:First, cut up your existing card.





Second, start making payments and not just the minimum. Pay as much as you can each month. Cut out any unnecessary other expenses.





No easy solution.
Reply:Credit card debt consolidation adds up all your unpaid balances and converts them into a single payment. This payment is far lesser than each of the individual payments. When you finalize a plan with a debt consolidation company, the company repays your dues to your creditors. Then you make a single payment to the consolidation company every month. Your average new interest rate is much below the old interest rate.
Reply:pay it off. or roll it into a mortgage and pay it off.