How to Shrink Credit Card Debt

How to get out from under credit card debt
You have lots of options, but you have to get started now

By John W. Schoen Senior producer
msnbc.com

Here’s our seven-step plan for getting the credit card monkey off your back:

Step 1: Reality check

Over the years, with the blessing of Congress and federal regulators, the credit card industry has created a repayment system that was skillfully engineered to put its customers deeper and deeper into hock. By keeping credit limits high and monthly payments artificially low, the financial services industry created a dangerous sense of well-being among borrowers.

Billions of marketing dollars have been spent to create this false reality. The first step to getting control of credit card debt is to remove yourself from the fantasy mindset that as long as you can make the minimum monthly payment, your debt is under control.

For example, that $18,000 balance — at a fairly generous 18 percent interest rate — would require a $360 monthly payment, based on 2 percent of the outstanding balance. At that rate, you’ll pay roughly $52,000 in interest before the balance is finally paid off. And it will take you 56 years.

read the other six steps here…Answer Desk: How to shrink credit card debt – Answer desk- msnbc.com.