Develop Your Own Credit Card Debt Reduction Strategy

For most American families, credit card debt problems are a major hurdle to building a healthy financial future.  If your goal is to reduce your credit card debt, then it is prudent to begin with a credit card debt reduction strategy that you feel confident will work!   
The first step in developing your credit card debt reduction strategy is to outline a sound action plan for reducing your existing credit card balances.  To attack your existing balances, you should prepare a table or chart that contains all of your credit card debts, with the smallest balances listed first in your table.  It is helpful to include the interest rate and the minimum monthly amount for each creditor. Your plan of attack can be to “pay off” the smallest balances first, as this creates a sense of accomplishment that is immediate.  Always be certain to pay “at least” the minimum monthly amount to all other creditors on your chart.  If there is a little extra that you can allocate toward your credit card debt strategy, then we recommend you pay “more” on the highest interest rate credit card to help battle the problem of ever growing balances.   An alternative plan of attack preferred by some is to focus on the credit card with the highest rate of interest, and allocate all extra monies each month toward that specific credit card.  The decision is yours.  The most important aspect is that you outline the strategy and commit to achieving your goals. 
 
The next phase in developing your credit card debt reduction strategy is to identify those “behaviors” that may have gotten you into credit card debt trouble in the first place.  Changing your core conduct patterns relative to finances can make a positive difference in how quickly you are able to rebuild a healthy financial future. You should ask yourself the following questions and be honest with how some of your behaviors, if continued, may stop you from achieving your credit card debt reduction goals.  Do you constantly apply for department credit cards because they are offering incentives like a “% off your first purchase”?  Do you pay with credit cards, when you actually have cash or your checkbook available?  Do you use a debit card to keep you from overspending on impulse purchases?  Are you enticed by the numerous “pre-approved” applications you receive in the mail at your home? Do you view the “unused credit limit on your credit cards” as way for you to secure life’s little luxuries because you deserve it?   
Keep in mind that the tips in this article are meant to be a helpful guideline to those who want to get out of credit card debt and have a “different financial future” than the path they are on now.  We also realize that credit card debt problems may be caused by unforeseeable circumstances like long term job loss or family illness.  If you find that you cannot develop a strategy where you have enough discretionary cash flow to reduce your credit card debt problem, you may need to explore other alternatives to help you with your debt problem. 
There are debt consolidation and debt settlement services available that consumers can explore through a complimentary consultation process.  A credit counseling/debt consolidation plan is different than a debt settlement/debt negotiation program, but both have merits and it is a matter of personal choice.