If you are in deep trouble with your credit card(s), it’s time to wage war on your debt. Your number one priority is to pay down the card balance. Get a second part time job it you need to. Don’t wait! The interest will accumulate each day. While working on paying off the debts you’ve incurred, try to find other cards that have lower interest rates (or low rates on balance transfers). Then, see if your card company will lower their rate to the competing rate you have found. In other words, use the competition among businesses to get the best deal for you! If they won’t lower your rate, transfer your balance to the lower rate card. For example, if you have $1,000 credit card balance at 20% interest, you’re paying at least $200 per year in interest or more (due to compounding). If you can switch that $1,000 to a card at 12%, for example, you’ve just saved $80 per year. Not bad for an hour of work.

If all your debts are overwhelming, I recommend visiting a credit counseling service. They will help you put together a plan to get you on path to a better financial future. One credit counseling services to consider is https://www.nfcc.org/. Also, Financial Peace University written by Dave Ramsey, one of the foremost experts on helping people get out of debt, is one of the best resources you can use to get your financial life under control. I recommend the audio book version that you can listen to on the go. After you have listened to it a few times you can move forward by following the lessons or even joining a local group to put yourself on a path to financial security and a more stress free life.

Another option to consider if you want to reduce your higher rate credit card balances is to borrow from Lendingclub.com or Prosper.com at a lower rate and use that to pay off or pay down your credit cards. For example, you could swap out your credit card debt at 20% interest with a rate at 10%, saving half the interest cost.