Take note of every single card that you own. Credit cards, store cards, etc., you should leave none aside. Look at the documentation you receive every month or consult with the proper department in order to find out the interest rate of each card. Once you’ve compiled this information, the smartest thing to do is to transfer the balance from the highest interest card to the lower ones whenever possible.

Pay off the higher interest Credit Card
After this is done you should pay as much as you can of the highest interest card and pay only the minimum payment required on the others till you finally cancel all the balance. You should continue with the next highest interest card and so on. This process may imply huge sacrifices; you must understand that unless you reduce your spending to a minimum your financial situation may go out of hands. Unexpected situations can arise and unless you are prepared you won’t be able to succeed in eliminating your credit card debt.

This process may take a lot of time, it really depends on your income and on how much debt you have grown. You must be patient and commit to reducing your debt.

Debt Consolidation Loans
Another option, if your credit is still good or if you can provide collateral, is to apply for a debt consolidation loan. This kind of loans let you use the fresh money to cancel as much credit cards as you can and reduce your payments to one, greatly reducing interests. However, if you fail to pay you may be risking loosing whatever asset you used as collateral. Bluntly, you may loose your car or even your home.

Unsecured Consolidation loans are very rare, but you may find this kind of loans. The interest rate on this kind of loans is pretty high though as there is much risk involved for the lender. This option won’t help you reduce your debt unless of course your credit card interest rates are way too high. Considering this drawback you may want to stick to the first suggestion and try to reduce your credit card debt by paying off the highest interest credit card first.