In a recent article from WMUR.com in New Hampshire, the Federal Reserve recently announced that 98 percent of more than $850 billion cumulative revolving debt in the U.S. is comprised of credit card debt.
If you happen to be one of those people that needs to dig themselves out of outstanding credit card debt, there are some simple steps that you can take right away to start paying down those charges, starting with consolidating and paying down your outstanding credit card debt much more aggressively.
Consolidate your balances into one card with the lowest interest rate and then cut some of your indulgences and use the money to pay extra towards your outstanding credit card balances. However, if you can’t consolidate your debt, start with the card with the highest interest rate and double or triple your monthly payments until you eliminate that balance.
Another tip to consider: People might want to consider paying their revolving debt down first and investing later. But if you’re convinced that you can earn a higher after-tax return on your investments than the interest rate you are paying on your debt, you may (cautiously) consider investing that money instead.
Finally, call your card issuer and ask for a reduced interest rate. More than half of those who called and requested a lower interest rate were successful according to a survey conducted by the U.S. Public Interest Research Group.