Q: Self-help websites would be appreciated.
A: The most important step you must take to reduce credit card debt is to use your credit card only when required. Larger the debt is, the longer it will take to pay it off. However, only paying cash for all of life's needs can be a scary proposition. Look for credit cards with the lowest interest rate, and consolidate your debt. Call your credit card companies and see if they can offer you any special rates if you transfer your balances to them. A popular alternative to debt consolidation is known as debt settlement or debt negotiation, which works by actually reducing what you owe to creditors. Debt reduction works by consolidating all non-secured debts, such as credit cards and medical and tuition bills into one monthly payment, usually substantially lower than the combined payments a debtor is currently making. The way that debt reduction works, is that the consumer pays the agreed upon monthly amount to the consolidation company and gives them authorization to make payments to the individual creditors on their behalf. The company negotiates lower interest rates, or sometimes, zero interest. Creditors are willing to make such arrangements, because they are more likely to receive payments on time from a debt relief organization than an over-burdened consumer.