Credit card debt elimination has been a hot topic lately as a result of the struggling economy. Banks and credit card companies are charging huge late fees to their customers, as well as raising the interest rates on existing services. While many people are struggling to make mortgage and car payments during these rough economic times, now may be the best time to concentrate on getting out of debt. Making a few simple changes in your daily spending and savings can make all the difference in getting out of debt.

There are two credit card debt elimination strategies commonly used by financial experts to assist card holders who carry debt. The first strategy is to attack the debt you carry that has the highest interest rate. This, of course, is a method used by individuals who carry more than one credit card with debt. Those who have one card with debt can focus their entire efforts on paying off just that card.

Individuals carrying multiple credit cards with debt should first work to pay down the highest interest rate card using this debt elimination strategy. Once that card has been paid off, shift your focus to the next card on so on. Each time you pay off a credit card, turn your complete attention to the next card until all of your credit card debt has been eliminated.

The other commonly used option for credit card debt elimination is often referred to as the "snowball" effect. This method of debt reduction has become extremely popular in recent years. It focuses on paying down the smallest amount of debt you carry as soon as possible. That means if you have a credit card with a $1,000 balance at 15% and another card with a $2,500 balance at 20% - you should pay off the $1,000 card first - even though you are paying a much higher rate on the other card!

By paying off the lowest balance first, you can free up that additional money quicker that can be snowballed into the next card. Many people are now using the snowball method when looking at all of the debt they carry, including car payments, mortgage, credit cards, and more.

Regardless of the credit card debt elimination strategy you decide to use, the most important thing to remember is to have a plan. Sit down and make a budget with your family members to determine how much money you bring in each month (income), as well as how much money is going out (expenses). Once this budget has been created, identify the expenses that can be cut out as well as the ones with recurring debt. Use the money that you have cut from your expenses to pay down your debt. Remember that every cent counts.

Meanwhile, look for ways to earn extra money. Having a little extra money that can be used to pay off your debt will accelerate your debt reduction plan. Attacking debt from both sides (income and expenses) makes for a sound credit card debt elimination strategy!