Since the average American household's credit card debt is over $10,000, it comes as no surprise that many are looking to eliminate all that overwhelming debt. Many wonder if it is possible to legally eliminate credit card debt. The short answer is yes. But if you want to get your credit cards under control and lower your interest rates, you need to develop a payment strategy. There are many different ways to go about eliminating credit card debt and each has its own set of pros and cons that you will have to consider.

You should be aware that 70% of all Americans live paycheck to paycheck and have no savings whatsoever. It's why credit card companies thrive. People want things but are unable to pay for it so they borrow - usually more than they are able to pay back in a reasonable amount of time. If you are one of these people who is struggling to eliminate their credit card debt, you need to consider paying at least part of it down. Now I know many of you are thinking, I would if I could. But you really need to consider possibly getting a second job and using that money solely to pay back your debts.

There are many different part-time jobs that you could obtain. Even if you have to flip burgers to make your payments, it is better than some of the other options of eliminating credit card debt. Also you should think about selling things that you don't need and maybe even having a garage sale or two. Anything that you could use to generate more income.

The other options for eliminating credit card debt are much more grim than just getting another part-time job. Chapter 7 or Chapter 13 bankruptcy can be a way out but they have many many drawbacks that you need to consider first. If you are at minimum or below minimum income levels, Chapter 7 bankruptcy will allow you to walk away from your debts in exchange for being unable to get a loan for 10 years or more. Also with Chapter 7 you end up losing most possessions.

Chapter 13 will allow you to pay off your credit card debts but at much more reasonable terms. It spreads out your payments over a longer period which will lower your monthly payments by quite a bit. But in both cases credit score will be next to nothing and getting a loan will be very difficult if not impossible.

You may also think about a debt consolidation company before considering bankruptcy. You will have to pay them a certain amount to have them help you deal with your debt. They will make deals with your creditors for lower monthly payments and/or payoff your debts and allow you to pay them instead.This can help you manage your debts. Just be aware that this will lower your credit score as well. It is very important to choose a legitimate credit card debt consolidation company as there are many unscrupulous types in the field. Make sure the only deal with a company that has been in business several years and that has a good clean background.

Making A Plan To Eliminate Credit Card Debt

When you make your plan to eliminate your debt, consider making payments on the larger balance of your credit cards until you can pay off the smaller balances in full. Just make sure that when you do pay off the smaller balances that you do not cancel your credit cards. That actually hurt your credit score believe it or not. Your credit score is not only based on your total debt but also on your available credit limit. So if you have a card with $1000 on it and another with $500 on it, and then you cancel a $500 card when you pay it off, you go from being $1000 in debt with a $1,500 limit to being maxed out at $1000.

If you're able to pay at least a little toward your credit card debt, communicate with your credit card companies - they may be willing to put a hold on your interest charges. They may also be willing to work with you to sell the entire amount for a discounted rate over a set amount of time. Be aware that this will negatively affect your credit score as well.

If you can, consolidate your debt and consider possibly getting a home equity line of credit. This will allow you to pay off of all your debts and only have one payment each month. This is of course opening another credit account, so you will have to be extra cautious about not spending too much. This is also another good opportunity to transfer a high interest rate card to a card with a lower interest rate.

The most important thing in all this is that you have patience. It can take a long time to repair your debt - much longer than it took to get where you are now. You also really need to realize that you cannot spend more than you can afford, especially once you have all that debt. You will have to work hard if you ever want to legally eliminate your credit card debt in a reasonable amount of time.