Credit card debt has become nightmare for many Americans nowadays. Everyone is looking forward to having a debt free life. In order to eliminate the debt, it is indeed important for the cardholders to make a change – a dramatic change in life.

When you have accumulated a large sum of outstanding balances on your credit card statements, you MUST start taking prompt action to avoid the situation from becoming worse. You need to work out a series of recovery plan so that you can rebuild your wealth within a short period.

In general, all of us are fully aware that the interest rates for credit cards are always high. Hence, you are recommended to negotiate with your card providers so that they agree to reduce the high interest rates. If the creditors reject your application, you can then proceed for balance transfer, i.e. transferring the outstanding balances of high interest credit cards to the lower one. If balance transfer is not allowed, you still have another two alternatives. If you can obtain some personal funds, you are advised to pay off those high interest cards first. If not, you can try to apply for debt consolidation loan which offers you lower interest rate.

While you are looking for “external” fund to pay off your debt, you should also find out ways to gain more wealth so that you can get rid of your debt faster. In my personal view, “cut and save” are the key words you need to keep in mind. Cut all your credit cards and throw them away. At the same time, cut down all the unnecessary monthly expenses, especially on entertainment, utilities, travels, clothes, etc. Then save as much money as you can. As a credit card holder, you might be a big spender previously. In your debt elimination process, you must have strong self discipline. It is a need for you to stop using your cards. You mustn’t create additional debt because it will increase your financial burden. In short, changing your spending habit and lifestyle is a must if you want to get your finances back to control.