The best solution if faced with mounting credit card debt is, to open a new one and transfer the current balance to the new card. This way, you can save money on interest and finance charges. Most credit card companies nowadays offer balance transfers to individuals who want to stay away from huge monthly interest. For a knowledgeable person, this can be an excellent method of reducing credit card debt.
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Great advice for a lot of people. You have to be smart about it and make sure you don’t make a late payment, but otherwise, transfers can work very well. I’d also recommend that you first call the current credit card company to see if they might reduce your rate – then perhaps you won’t have to go through the process of getting the new card after all. I have one client who owes over $20,000 on a Visa that was at 18%. He spoke with a ‘rate specialist’, touting his rising credit score and declining balance and got his rate cut in half, from 18% to 9%! His monthly interest charge was instantly reduced by $150, which will help him pay off his debt even sooner.