by Joseph Kenny | 08/18/09

Thinking of paying off your credit cards can often feel like dreaming the impossible dream.  The economy has seen better days, and you feel as though staying afloat financially should be your main goal.  Still, you need to realize that you have bigger priorities and that careful planning can turn things around. 

Credit Companies Are Just Like You… Kind Of

Credit card companies are just like you in that they are trying to save money during tough times.  They are doing this by looking for anywhere they can lower their potential risk.  If you have debt then you are a risk.

Credit card companies are taking drastic action.  They are reducing credit limits which, in addition to the obvious reduced credit, can lower your credit rating.  They are closing down accounts which can have the same negative effect on your credit score.  Finally, they are raising interest rates.  This is not good news for you.

Paying Off Your Credit Card Debt

There is only one surefire way to protect yourself from all these assaults.  You have to get yourself our of credit card debt once and for all.  You have to begin with making the elimination of credit card debt a priority in your life.  It will take regular attention and genuine effort in the form of life changes on your part.

Begin this regular attention by reading every mailing (and emailing if you've gone paperless) that you get from your credit card company.  You want to know every expense that has been added to your credit card account to make sure that they are all accurate.  You never know when an error has been made or when someone is using your credit card information for their own ends, and you won't know until it's too late if you don't keep tabs on your account.

You also need to check for account updates.  While these mailings may be dry, they may inform you of interest rate increases.  You need to be aware of these before you are blindsided by your new rates.

Even if you always pay your bills and hand over the minimum amount every month on time, your credit limit could still be slashed.  You have to pay more than the minimum to make progress.  Whatever you have to do to do it, you have to do it.  You have to start climbing out of that hole sometime.  The more you pay each month, the faster you'll be debt-free.

Be Careful (What Not To Do)

Don't rush to agencies that promise instant solutions.  If it sounds too good to be true then it probably is.  You can investigate their claims but be cautious.  If it were that easy then no one would stay in debt for long.

Also, don't dip into your retirement fund.  Don't get a home equity line of credit.  You need to pay it off, not shift it around.

You know why you have to pay off your credit cards.  You know how to do it.  Now comes the hard part.  You just have to do it.