Many adults in their early twenties have a huge amount of credit card debt. It is such a huge problem that many people want to know what the secret to eliminating credit card debt. Is there such a secret? Is there a quick and easy way to eliminate credit card debt?

Some young adults have an exceed of over $25,000 dollars in credit card debt. Literally it will take them 10 to 15 years to completely pay off their credit cards debts. That is unless you know the secret in eliminating it.

The truth of the matter is that there is no secret. The only secret is to have self preservation and self control on your spending habits. Fear not credit cards as they are a great thing to have. Credit cards can successfully allow you to build and establish credit which can later be used towards getting a car or even a house.

Unfortunately, as seen in this included YouTube video, credit cards are much like a gambling addition. Once you have a credit card, you can easily become addicted to using it and spending money. As shown in this YouTube video, perhaps truly your best option and first step towards eliminating and managing your credit card debt is to carefully cut your credit cards not only in half but many many times.

A very interesting story surfaced today on CNN.com. In fact it made the top news on CNN today. The story is about Don Cressman, an average individual, 53 years old, who fell into a huge trap of credit card debt, while also discovering the many tricks that credit card companies have towards squeezing out every last cent from their customers.

Do you know what happens when you are late on making a payment? Are you aware of all the hidden fees and charges that you can be charged against you? Sadly, did you know that Americans hold $850 billion in credit card debt, and the average balance per card-holding household is $8,568, according to the Consumer Federation of America.

Did you know that even borrowers who pay their bills on time can fall victim to deceptive practices used by the card issuers and get slammed with rising interest and hidden fees? In this wonderful article written By Jessica Dickler, CNNMoney.com staff writer titled, Getting squeezed by credit card companies.

I learned all too quickly how innocent people are getting squeezed by credit card companies for every last penny they have. People don’t read the fine print. There is a reason for that too and credit card companies know this. The fine print is not very easy to understand. Among the 15,000 words in the hidden fees, credit card companies will stuff in one or two vital sentences that totally change everything about your contract that would make you really reconsider doing business with your creditor if you had the chance to go back.

Eric Jilson from iStockAnalyst.com mentions that it requires much perseverance in working towards becoming debt free.

In a recent article released titled, Credit Card Debt Elimination Requires Perseverance, Jilson said, “Despite the conventional wisdom, getting out of credit card debt is simple. Not easy, maybe, but simple. It requires only one thing: will power. No matter what the amount owed or the APR on the credit cards, consumers can overcome their cash flow problems, avoid the temptation to make unnecessary purchases or buy things they don’t need, seek assistance and plan for the future.”

I believe this to be true. The first line of action against getting trapped is in forcing yourself to read the fine print. If you can’t interpret the terms and conditions, I would recommend hiring an attorney to review them for you. The cost of an attorney is nothing compared to the years that you could spend paying off a credit card debt with mysterious hidden charges. The second line of action is just as Eric Jison mentioned, you have to have self discipline and be very strong when tempted to make unnecessary purchases.

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37 Days To Clean Credit – Like most people I got a line of credit in college and quickly racked up over $14,000.00 in student loans and credit cards. Not to mention, with a small amount of income coming in, I missed payments left and right and within a few short months – my credit was completely shot. A credit score only a mother could love. Life at this pointed sucked… I was constantly being denied for gas cards, car loans, credit cards, “secured” credit cards, and business loans. It was so bad, I even got denied a job! – Read the full story of Chris Brisson.

The Slippery Path of Credit Card Debt
Written by Brennan Kingsland

Isn’t it fun to find a wonderful bargain while you’re shopping? There’s something almost magical and fulfilling about handing over that plastic card and signing the dotted line so you can gather up goodies. In fact, it’s so temporarily rewarding to find such a deep discount on that jewel of a purchase, that it’s easy to convince yourself you are being a savvy shopper.

But are you really saving money with that special deal? Not unless you are able to pay off the balance before it becomes due. Otherwise, you have to include the price of of your finance charges into the cost. And that can add up very quickly!

There are often valid reasons for using a credit card. They’re an excellent way of keeping an accurate record of business expenses. And trying to obtain a rental car without a credit card is a very expensive process. But, unfortunately, most of us use our credit cards in a way that winds up costing us more than leaving a cash deposit for a rental car ever would.

Have you read the fine print on your credit card contract? Do you really understand what interest rate you are paying for using that financial institution’s money? Do you have any idea of what that money, or that “great bargain”, is really costing you?

One thing you need to understand about using credit cards is that, unless you pay the amount due completely each month before interest is added, your debt grows, even when you don’t purchase anything else. And most families DON’T pay more than the minimum each month. In fact, more families and individuals than ever before are finding themselves unable to meet even the minimum payment. How did this happen?

There are several reasons for this. Some are our own fault and some are the fault of the credit card companies, but the end result, either way, is lots of families drowning in credit card debt. Let’s look at some of the ways this debt accumulates.

First, credit card companies are eager to loan you money by establishing a credit card account with you. That’s how they make money. New grads and college students receive numerous offers to get the latest credit cards, often with the fabulous design of their choice, at a fantastic low rate, (perhaps even interest-free for the first 90 to 180 days). What those new users don’t pay close attention to is how that low or free interest rate will JUMP, often to 15%, 22% or even 29%, after the honeymoon period is over. With the new-found freedom to buy, buy, buy, with no interest rate or penalties, instant gratification becomes ingrained. It just gets easier and easier to spend money without really feeling like you’re spending money. And by the time that interest rate kicks-in, you already have the card maxed-out, or nearly so.

Instant gratification isn’t an affliction of only new card holders. Many people who should know better run their credit card debts up to the MAX, then get a second, third, fourth or more, simply so they can continue shopping on borrowed money, whether for necessities or for that momentary feeling of shopping pleasure and self-gratification.

A third way to get in trouble with credit cards is to not understand that those companies got you to sign on the dotted line that they could RAISE YOUR INTEREST RATE for any number of reasons. We had a credit card for 17 years, at a very reasonable rate – 7%. My husband, who always pays the bills, had a heart attack. While I was at the hospital with him for his open-heart surgery, I neglected to pay the bill within the agreed time because I was a ‘little distracted’. Our rate jumped to 29%, after seventeen years of a perfect payment record. That new interest rate, combined with the medical expenses of heart surgery, almost bankrupted us. It was a painful lesson and a scary close call but we learned some valuable lessons.

First of all, you need to take a cold, hard look at your spending habits. In this iffy economy, just ignoring the problem will not make it go away. If you are paying only the minimum amount each month, you need to recognize that YOU HAVE A PROBLEM. The smart thing to do is face the problem and GET HELP. Start by paying off the card with the highest interest rates first. When that card is at zero, start doubling-up payments on the next-highest interest rate, and so on.

It is very possible to contact the credit card company and negotiate a more favorable interest rate. Or, there are companies that can help you reduce your credit card debt, but as with everything, there are good ones and bad ones. Now that you’ve decided to straighten-out your financial life, take the time to research and get recommendations. Don’t just go for the glossiest ads or the biggest promises. And be very wary of debt consolidation loans. Yes, you can reduce all your bills into one easy monthly payment, but what will you do with the extra money? Will you use it to pay-off existing debt or start a savings program? Or will you spend the money on more ‘must have’ luxuries. Debt consolidation only works if you stop running up more debt in the meantime.

Whatever course you decide to take, be proactive. Don’t just dodge the phone calls and hope bill collectors will go away. They won’t AND your credit will be ruined. I repeat, GET HELP!

I’m not suggesting that you cut-up, or burn all your credit cards, but unless you can trust yourself to STOP charging, then perhaps you should get rid of them. I personally feel it is better to keep ONE credit card for genuine emergencies, but keep it where you can’t get to it unless you MUST!

Don’t be at the mercy of credit card debtors! TAKE ACTION NOW!

Paper or Plastic?
Written by Annie Binns

No, I’m not talking about your grocery bags.

I’m talking about cash or credit, and I’m asking you to consider what your life would look like today if you had spent the last five, ten or twenty years answering that question with, “Cash, baby!” I think Ralph Waldo Emerson said it best: “Money often costs too much.”

How would you feel today if you had zero credit card debt? I’m not saying you should cut up your credit cards – in fact, having and using credit wisely is a valuable tool and having a good credit score can save you money on things from car insurance to what you pay for your house!

What I am saying is that those credit cards should be paid off monthly. And yes, by paid off that means your balance is a big fat goose-egg! There is a simple way to avoid credit card debt – and if you teach your children this technique, it will be one of the best things you can ever do for them! Consider the following decision matrix for any purchase, any amount, every time!

If you need to use your credit card to pay for your kidney transplant, I really don’t expect you to take too much time considering it! On the other hand, if you need new tires for your car, you could consider waiting until you had the cash to pay for them.

Am I preaching to the choir? You already have tons of credit card debt and are barely making those minimum payments every month? How do you get out of credit card debt without filing for bankruptcy?

Notice the phrase, “without filing for bankruptcy.” I know that for many people that really is the best choice. However, it should still be your last choice.

Honestly, there are proven ways to pay off your credit card debt. I’m going to tell you about two of them, but first I’m going to tell you what doesn’t work.

Paying your minimum balance every month does not work.

We’ve all seen the math. If you charged $5,000 at the respectable rate of 9.9% interest and make the minimum payments of 2% per month, it will take you OVER 21 YEARS to pay off that debt. Don’t make me say it again. Oh, if I must: OVER 21 YEARS!!!

That’s crazy. Say you throw in an additional $25 each month. That time frame drops to just over eight years. An extra $50 each month gets you down to FIVE YEARS to payoff.

You may be thinking if you had an extra $50 each month, you wouldn’t be in so much credit card debt to begin with. If you spend one month using the decision matrix above, I guarantee that you will find things that you don’t need to buy, and could even (dare I say it?) live quite comfortably without. Will it be $50 each month? Maybe not. The important thing is to take whatever extra you can find, wherever you can find it, and add it to your monthly payment.

The second proven method to pay off your credit card debt is with a debt-consolidation loan. This is often a good choice when you owe more than 10% of your annual income on multiple credit cards, and an even better choice if you also have a mortgage, car payment, 2.5 kids, a dog and a goldfish.

There are reputable companies whose business it is to review your credit card debt, negotiate to lower that debt, pay off your credit cards and give you one loan to pay instead. The payments will always be lower than your combined minimum payments on your credit cards (otherwise it wouldn’t make much sense!) But beware – your total payment after interest may be more than if you had paid off the credit cards directly.

This is a very competitive market and the internet makes it hard to tell the difference between the good and the bad. You should interview at least three companies before choosing the one you want to work with. Start with the following questions:

• Do they require an upfront payment?
• Do they require a monthly fee?
• Will they pay off your debts and issue you a new loan?
• What is the total cost of the loan? This disclosure is required by law.
• Always ask this question: “Are there any other fees that you haven’t disclosed yet?”
• Remember, if it sounds too good to be true, it probably is!

What it really takes to be debt-free are the same skills we need for all other parts of life: Patience, integrity, planning and sacrifice. And a little bit of luck doesn’t hurt, either!

Avoiding the Pitfalls of Credit Card Debt
Written by : Chris Guthrie

Falling into credit card debt is one of the worst ways to waste your money. Every month that you carry a balance on your credit card you’re wasting money, especially with some interest rates on credit cards in the 20 percent range. Now it’s easy to say that you’re going to waste money if you don’t pay off your credit card bill, but when you’re caught in a cycle of growing credit card debt things can get scary. So I’d like to give you a strategy for avoiding credit card debt:

Setting a Budget:

You’d think that people wouldn’t have so many problems with credit card debt when you simply need to avoid spending more money than you earn. However, it’s easy to run into a situation where you’ve made several purchases without realizing you don’t have enough money to afford them. So to help avoid credit card debt you absolutely have to set up a budget. Start by listing out all of the recurring monthy expenses you have such as rent, food, utilities, gas, car insurance, car payment etc. Now that you have listed out your monthly expenses, write out your monthly take home pay (which is what you get after taxes are taken out). If your take home pay is less than your monthly expenses you need to find a higher paying job or take on a second job because you’ll never be able to get out of credit card debt.

On the other hand, if you find yourself in a better financial situation with money left over after you take out expenses than you have something to work with. Take what money you have left over from paying your bills and try to save some of it. The portion you save will vary from person to person, but it’s very important that you do save some of your left over money and put it into a savings account. Now that you know how much money you spend every month and how much money you have to work with it’s important to keep a rough running tally in your head as you make purchases throughout the month. The key here is to always stay ahead and have more money left over at the end of the month than you started with so that when you stop by your local electronics store and absolutely “have to” purchase a new HDTV you can do so without having to go into credit card debt. I speak from experience when I say you never want to find yourself in the situation where you buy things now and pay later because in the end you’ll end up paying much much more later.

Join me next week when I cover what to do when you’ve fallen into credit card debt and can’t get out.

*I know you wanted both topics to be covered, but I thought it would be a perfect spot to keep the readers hanging on until next week by splitting the times up in two. I also found myself running out of room as well, so that’s why I didn’t cover them both in this post*

The Wonderful Invention of Credit Cards and How To Manage Them
Written by Jarret Cade

Ah, credit cards, what a wonderful little invention right? A credit card can be both a good thing and a bad thing. However, more often then not they turn into a bad thing. Why? Because a credit card allows you to spend money you don’t have. This is where most people get in over their heads instead of coming up with a plan and sticking to it.

Some studies report that in 2007, credit card debt that was past due 30 days or more totaled over $17.6 billion. Other studies show that close to 5.3 billion credit card offers were mailed out to U.S. households. No wonder why there are so many people in debt, the credit card companies just keep feeding the nation.

So, how exactly do you avoid credit card debt you ask? Well the obvious answer would be to never get a credit card. No credit card debt, no using money that is not yours, meaning you have nobody that you have to pay each and every month. But in today’s world, you almost certainly need a credit card. Credit is a big factor when it comes to renting an apartment, buying a house, and getting any type of loan. Considering that most people do one of those things in their lifetime, not having a credit card is really not an option.

Like almost every other person over the age of 18 in the U.S., I have a credit card. It is only at a small limit as I have not had it very long but that is ok since I don’t really buy a lot of stuff as it is. A few things here and there, but nothing that I cannot afford. Notice the last part of that sentence, “but nothing that I cannot afford.”. This is probably the best advice that I can give to steering clear of credit card debt. I have a pretty simple philosophy, if I cannot afford it I do not deserve it.

Honestly I would rather have something that I know that I own, then to have something that I technically do not own because I am paying somebody else for it. Yeah I may miss out on some things that I really want and I may not have a much fun as the person next to me. But I can be guaranteed that I do not owe anybody any money. And when you know that you do not owe anybody any money, you have a lot less to worry about.

If you are one of those people that just has to have something, set a limit on how much you spend each month. Only allow yourself to charge a certain amount to your credit card and stick with it. Because I can almost guarantee that once you go over that limit, you will continue to keep doing so. Just because your card gives you a credit line of $1500, does not mean that you have to go out every month and buy $1500 worth of items just because you can. Mind you, you are still spending money that is not yours and you will have to pay that money back eventually, but if you have the discipline to set a limit you probably have the discipline to make the monthly payments as well.

Like me, you have probably gotten more then a few credit card companies offering you all kinds of deals. And as good as some of those deals sound, you should really find one that suits you the best and stick to one card. You do not have to accept the first offer that you receive, take some time and check out the companies online and see what they offer. Some companies offer special rewards such as cash back on purchases made at the store. As well as some companies giving you points each time you make a purchase which in turn you can use to travel with. Having one card will obviously limit how much you can spend, but once you start using the card and make payments, you should start seeing your limit increase.

Ah, the monthly payment. This is how most people end up in debt and remain in debt. Because the companies only ask for so little, with interest and all the other fees, sometimes you are not even actually paying off the company. In reality you are paying the fees and interest while each and every month, more and more interest is applied. The monthly payment is usually extremely low and that is what attracts people so much. You can go out, spend a couple hundred dollars and when it comes time to start paying back that money, you only have to pay $15 each month. And that is what most people do, make the minimum monthly payment. Eventually you will be able to pay off the debt using this method, but it will not be quick and like I mentioned before, you could just be paying interest and fees instead of the actual debt. So make an effort to pay more then the minimum, in all honesty pay as much as you can afford because the sooner you pay off the debt, the sooner you do not have to worry about it.

Along with paying more then just the monthly minimum, you need to make these payments on time. Credit card companies will add a fee to your account each and every single time that your payment is late. Add this along with the monthly interest on your account, and it is a sure fire way to place yourself in a situation that can only get worse. These fees can be small and they can be large, in any event, it is extra money that you have to pay.

So how exactly do you go about getting out of credit card debt?

Like I stated in one of my previous paragraphs, make the monthly payments. Make more then just the minimum payment and even more importantly, make them on time. The possible fees that the companies may add onto your account when you do not make a payment will put you even deeper in debt. But I can barely afford to make the miminum as it is, what do I do? Simple, give up a few luxury items. Instead of spending $6 on a mocha at your favorite coffee shop, spend $1 on a bottle of water. Yes I know, it doesnt taste as good, but look on the bright side, you are saving $5 and the water is a lot healther for you. Take that $5 that you saved and put it towards your monthly credit card payment.

Eat out less often as well. It costs a lot more money to go out to a restaurant then it does to stay at home and cook. And like with the bottled water, chances are the meal will be healthier. Unless of course you are eating anything deep fried, but that is another issue. I know these things may be hard to do, but you are going to have to make some sacrifices to get yourself out of debt.

Hey, I just got this letter in the mail from Company XYZ telling me that they can lower my monthly payment and save me money! No, not really. This companies are out to make your already bad situation even worse. Sure, they may reduce your monthly payments but in the long run you aren’t saving any money. You are actually going to be spending more considering that Company XYZ wants to make some money as well, they are for sure going to figure out a way to get you to pay. So on top of you already owing your credit card company money you will also owe Company XYZ money, not a very good thing if you are trying to get out of debt. A great way to get even further into debt though….

Stick to the credit card(s) that you have and do not accept any more offers. You may end up finding that even your own credit card company is willing to give you another card to pay off your current debt with them. There are rare occasions where it may be a better option to move all your cards onto one card, but these situations are far and few. Another card means more interest, more fees and more debt.

So, lets review.

How to avoid credit card debt altogether:

• Do not get a credit card in the first place
• Do not spend more then you actually have in your account
• Make a full payment as soon as you get the statement
• Make the monthly payment and make sure it is on time
• Stick to one credit card
• Set a limit and stick to it

How to get out of credit card debt:

• Make more then just the minimum payment
• Make the payment on time, do not wait until the actual due date
• Sacrifice some luxuries to make more then just the minimum payment, in the end it will be worth it
• Do not accept more credit card offers
• Do not accept offers from companies claiming that they can reduce your monthly payment and save you money

How Go Beat Credit Card Debt
Written by Tim Kwiatkowski

The simplest way to beat credit card debt is to avoid it. OK, easier said than done! But seriously, credit card debt is evil. If you cannot avoid it (like most Americans), at least keep it manageable. Following are five tips to keeping your credit card debt manageable, and with a little luck, avoid it altogether.

1. Don’t impulse purchase. Said another way; don’t buy things the same day you see them. Sleep on it. If still in doubt, sleep on it for a couple of days. I have found that after a day or two of reflection, I usually realize that what I wanted is not necessarily something I really needed.
2. Pay with cash whenever possible. It’s not easy, but it’s amazing how differently you think about spending money when it’s cash versus a credit card. You are less likely to shell out hard earned cash (real Dinero’s) for “nice to have” things.
3. Negotiate the interest rate with your credit card company. If you are like most Americans, you get several credit card offers each week. Play those credit card companies against each other. When you get that next offer, call them up. Tell them the interest rate and benefits you get from your favorite credit card company and ask them if they’ll match it. Half of the time, they’ll meet or beat the deal you are currently getting.
4. Watch your credit card statement. As crazy as it sounds, I have experienced establishments that round up (in a big way!) when you make a credit card purchase. Get a 15 dollar haircut; your credit card is charged 20 dollars. Have a nice 75 dollar meal; your credit card is charged 95 dollars. It seems small in the whole scheme of things, but it adds up. Don’t get taken for a few dollars here and there. Save your receipts and verify your credit card statement each month. Don’t be afraid to call your credit card company and dispute a charge. If a charge is total BS, your credit card company will do the legwork and contact the vendor to dispute the charge. I have found that in most cases, your credit card company will resolve almost any charge that you do not agree with.
5. Number Five is the most important (and hopefully simplest) tip; Pay off your balance each and every month! This may be an incredible challenge, as credit is all too readily available, but it is essential to you and your family’s well being. If you avoid carrying a credit card balance, you avoid paying interest charges to the credit card companies. The credit card companies fool you by offering a low “minimum monthly payment”. Don’t be fooled. That minimum monthly payment is available only so you drag out your payments and rack up interest payments to your credit card company. It is not in your interest (no pun intended) to pay the minimum monthly balance. Be sure to pay off your balance each and every month!

So assuming you mastered 1 through 5 above, how can you beat the credit card companies? Take money from them! There are a number of credit card companies that offer cash back on the purchases you make. I did a ton of research on cash back credit cards and wrote up my finding on my blog about Getting Things Done. I would highly recommend that once you get your credit card finances in order, you find yourself a high quality cash back credit card and take money from the credit card companies!

How Splurging Now Can Hurt Your Future Budget
Writtten by Woobie of EvilWoobie.com

I was a new graduate when I had my first lesson on handling credit. You know how fresh graduates are, excited to have a job, feeling high over the new pay source and splurging like money will never run out. I took it to a whole new level, I splurged my actual paycheck AND my credit limit. I was all over the mall, finding things to buy rather than considering my needs. In my mind, I can pay for everything. My newly approved credit limit is humongous, and I’m all about rewarding myself for graduating successfully, getting a high paying job and just being… great. My rationale was: the credit bill is still a month away, plenty of time left to earn back what I splurged. I went home with my purchases, feeling confident that I am doing the right thing.

A month passed and I started becoming aware of the balance in my card. The bill arrived and the numbers swam in my eyes. Did I really spend that much on crappy stuff that are now accumulating dust in my closet? I zeroed in on the minimum amount I have to pay and breathed a sigh of relief. It was affordable and there’s enough time to earn what I need to pay the whole amount during the next cycle of billing. Everything’s still cool: rent’s paid, I have enough food inside my fridge to last the week, and most of all, my credit standing was ok.

I started getting worried during the third month when I saw the interest rate of the card I maxed months ago. The amount was higher than I expected. The 3 or so percent that the credit companies charge doesn’t seem big at first, but it does now that I consider how much it’s eating up my earnings for the month. My plan to re-earn what I spent failed as I didn’t factor in my daily expenses, and the small things I need to pay for to live. The paycheck which seemed so heavy at the onset suddenly became pitifully small when I finally sat down and calculated what I need to pay for and what I actually spend everyday for my daily needs.

It took a year for me to be in the black again in terms of my credit standing. Unknowingly, I taught myself a big and valuable lesson in handling money. A credit limit is not actual cash that one can spend. By splurging it at the onset, I committed the bulk of my future earnings to paying it all back, not to mention the interest that keeps accumulating. Put it in simple terms, If I cannot control my spending, I will not be able to save anything in the next year or so.

Now, I spend for my needs in reverse. I use my card to pay for the basics, groceries, toiletries, household items, etc., and I use my actual cash to pay for luxuries. That way, I see my stash dwindling whenever I pay for something I don’t really need. I still allow myself luxuries and the occasional spa treatment, but sparingly. I never liked the feeling of pressure and regret that I wasn’t more careful.

A credit limit is not ‘invisible money’ that you and I can spend. It is not the deep well of spendable cash that we can use anytime. It is our own money, the one we earn in the future. Splurging the credit means committing ourselves to a future in debt, with not much room for anything else.