Consolidation

• Opinions differ regarding the wisdom and effectiveness of consolidating your credit cards. While it may have a negative effect on your credit rating, getting rid of all of your credit cards except one will certainly make it easier for you to maintain awareness about exactly how far in debt you are. Use your card that has the lowest interest rate to pay off the balances of the other cards, then destroy them. One benefits of this method is that you are now constrained by the credit limit of a single card and will have difficulty going further into debt.
  
  

Keeping Records

• If you don't do so already, begin keeping very careful track of all the money that you spend. Credit cards are often related to impulse spending. The fact that you can simply hand the card to a clerk and walk out with expensive merchandise may obscure the fact in your mind that you are spending large amounts of money. Get your budget down in black and white, and if it helps, highlight each amount that you have paid for with a credit card. Use the awareness of these mounting debts to increasingly restrict the frequency of your credit card use and the amount that you spend.
  
  

Bank Loan

• Bank loans are available at rates that are substantially lower than credit card rates. Take out a bank loan at the lowest rate you can find and use the money to pay off your credit card debts. This method will only work in conjunction with other steps that change your credit card spending habits. If you don't change them, you will soon find yourself with new credit card debts along with your new bank loan debt.
  
  

Interest Rate Reduction

• Credit card companies are sometimes willing to reduce their interest rates for clients who ask, although this fact is not widely known. Success is not guaranteed, but you have nothing to lose by simply phoning the company, explaining your situation, and requesting a lower interest rate on your card. If you have a long history with the company and a good credit rating, they will probably be more receptive to your request.