Once you have determined you need to do something about the amount of debt you have, chances are you want the fastest method of getting out of debt possible. Whether you have multiple credit cards that you pay each month or just one or two credit cards with large balances – you can benefit by saving both money and time by using balance transfer credit cards to get out of debt. Most 0% balance transfer offers last for at least 12 month and some last as long as 24 months. With one of these offers, you can stop interest from relentlessly piling up while under the umbrella of a 0% rate.

Balance Transfer Offers Help You Get Out of Debt Faster

On a credit card with a $2,000 balance charging you 15% interest, your minimum payment is likely to be 2% of the balance – or around $40 per month. Of that $40 payment, $24 goes toward interest. That means that more than 50% of your payment is going towards interest while less than half is working to reduce your debt. Even if you pay twice the minimum, or $80 a month, over 25% of every dollar you send in is going towards interest.

If you transfer this balance to a credit card with a 0% balance transfer offer and continue to make a $40 payment each month – all $40 will be deducted from your balance. And if you can afford $100 a month, you can reduce your two thousand dollars of debt by more than half in just one year.

How Balance Transfers Work

Credit card companies rely on 0% balance transfer offers to bring in new customers. They charge a fee of 3 to 5% on each balance you transfer, but then give you 12 months or more with no interest. Even after you account for transfer fees, most people with interest rates in the low teens or higher can save money when paying off credit card balances without interest expenses.

During the 0% period, all of the money you send will go toward reducing your debt, helping you pay the balance off quicker.

The credit card companies with balance transfer offers are hoping you have a lot of debt left when the 0% promotion ends, so that they can begin charging you interest on the remaining balance. If you've made repaying that debt a priority, hopefully the debt has been paid off. If you still have a large balance left once the promotion ends, there are probably other credit card companies who will offer you a new 0% balance transfer offer so you can continue paying off the debt interest free.

For People With Too Many Credit Cards

If you're struggling to get out of debt because you have a few hundred or a few thousand dollars spread out across several credit cards – a balance transfer offer will help you get organized and pay off your debt. When you are sending a small payment to multiple credit cards, most of your money is paying interest. This is why you can send money month after month and barely see any difference in the amount of credit card debt you have!

If you can get approved for a 0% balance transfer offer, you can then transfer balances from your highest interest cards that cost you the most money. If you don’t get a high enough credit limit to cover all of your credit card debt, pay close to the minimum on your 0% card and as much as possible on the cards that still have rates. Then, once you’ve paid them off, try to repay the debt you transferred before the 0% rate expires. In the meantime, you can continue sending just the minimum payment to your other credit card accounts if you don't have additional money in the budget to send more. Once you've paid off your balance transfer; you can look for a new balance transfer offer for your remaining high interest credit cards and repeat the process.

Balance Transfer Offers Help You Get Out of Debt Faster

On a credit card with a $2,000 balance charging you 15% interest, your minimum payment is likely to be 2% of the balance – or around $40 per month. Of that $40 payment, $24 goes toward interest. If you transfer this balance to a credit card with a 0% balance transfer offer and continue to make a $40 payment each month – all $40 will be deducted from your balance which helps you get out of debt faster.

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Jeff Weber writes about saving money and reducing credit card debt with balance transfers at SmartBalanceTransfers.com, a website designed to educate consumers about 0% APR balance transfercredit cards.

The other day I got an email from a reader asking "Come on, how can your debt calculator help me get out of debt? It just makes me feel bad to see how much I owe."

OK, I can certainly understand that type of feeling. Nobody wants to know just how bad their financial situation really is, especially if there is no easy way to fix it. There's nothing noble about admitting you have lots of debt.

So I thought about coming up with a nice way to tell her "If knowing how much debt you have makes you feel bad, then you need to face up to the reality of your situation!"

I didn't want to be mean about it. But the hardest thing - and by far most important thing - you can do when you have too much debt is to know EXACTLY where you stand. Nothing good happens when you pretend your situation is not that bad. And nothing good comes from closing your eyes and ignoring the truth.

Sure, the truth hurts. And it hurts a lot.

So?

Maybe that will help you open your eyes and do what needs to be done to fix the problem!

If you only have a little bit of debt, and just want to see where you stand, that's fine. But if you're in way over your head, and you're losing sleep because of your credit card bills, then it's time to wake up!

So here are the 3 most important pieces of information you can get from a credit card debt calculator:

1. You'll learn how long it will take you to get out of debt.
   Will it be shocking when you learn it will take you 13, or 2, or 54 years to pay off your credit card bills? OF COURSE!!! But without this type of shock, some people would keep charging until their cards blew up. Well, that's a little dramatic. But they'd certainly keep charging until they are all maxed out & they can't get any more. So better to learn the honest truth as soon as possible.

2. You'll learn how many bills & how much debt you really have.
   You can't fix a problem unless you know how big the problem really is. And you can't understand how much you need help until you see it written down in front of you. So grab all of your credit card bills, all of your other monthly bills that you're behind on paying, and write down a list on a piece of paper. Forget the computer, writing it down makes it even more meaningful. List the amounts you owe, the minimum payments, and the interest rates. Then...

3. You'll learn the importance of coming up with a plan & sticking with it.
   Here is the MOST IMPORTANT thing you'll learn - how to fix the problem. You have a few choices here. You can do it yourself, using debt snowball or debt avalanche. You can borrow money from a relative. Or you can get professional debt relief help. It doesn't matter which solution you choose. Just DO SOMETHING! Come up with a plan. And start doing it right away.

Time is your biggest enemy when it comes to debt. The longer you've been in debt, the longer it will take you to get out. The longer wait to get started, the longer it will take you to get out.

So use this information to change your financial path in life. Once you've started to take control, and start working on your plan, you'll start feeling a lot better!

See how long it will take you to get out of debt:

If you've been looking for help getting out of debt then you've heard the ads for debt settlement:

• "Get out of debt in 3-6 months"

• "Save 40-60% on your credit card bills"

• "Avoid bankruptcy and improve your credit score"

All of the above statements contain some truth - and some non-truths. So the key is to figure out which is which. If you're looking for information on this controversial debt relief option, here are 3 people you should NEVER listen to when seeking advice on debt settlement:

1) Anyone who works for a debt settlement company.
When you pick up and call a debt settlement company you should be doing it for only one reason - to get information about the company. You should NEVER call up a company offering the service and ask them for advice on your situation. Why not? Because these people are NOT trained debt counselors who are trying to help you find the best solution to your financial problems. No matter how nice or helpful they seem to be, they are trying to get you to sign up for their solution. Now, signing up with their company and using their service may be right for you. But only after you've done a little comparison shopping to compare a few different options.

2) The "experts".
I know, this doesn't sound right. The experts should be the very people you should listen to, right? In some cases that is correct. But not when it comes to debt settlement. Most experts have no idea how debt settlement can help people in the right situation. And most speak very negatively about this option. Sure, there are many companies out there that are not much more than "Scams" and the experts are right when they tell you to avoid them. But some are very reliable companies, and sometimes settling your debt is the right solution. Unfortunately, the experts usually don't tell you what the right situation is!

3) Your friends & relatives.
There are lots of subjects I like to talk about with my friends. But my financial situation is not one of them. Maybe that's just my personal preference. But unless your friends or relatives have gone through some financial troubles, and dealt with credit card debt, DON'T ask them for their advice and DON'T tell them you need help. Not that they won't try to give you the right advice. But sometimes it is very tempting to listen to Uncle Joe or Cousin Mary and think they are telling you what you need to know. Most of the time it's much better to get advice from someone who is not so close to you.

So who should you listen to for debt settlement advice?

First, listen to those who have gone through it!

There's no better way to learn about how the process works than to get advice from someone who has used this option. Debt settlement is not something that everyone knows about (including many of the "experts" from above). It's a very specific option for a very specific type of financial situation. So listening to people who have settled their debts is a good idea.

Go to Google.com and type in "debt settlement forums" and visit a few of the personal finance discussion forums. You'll read about people who have had good experiences. And you'll read about those who had bad experiences.

Then if you have any questions you can join the forum and ask away. Take a few notes about which companies are the best, and what types of financial problems are most similar to yours.

Second, listen to your own instincts. Shop around and call 2-3 debt settlement companies and ask them lots of questions...read through their websites...get a copy of their service agreements and read through it carefully. You'll get a sense of how the process works, and which debt settlement companies are trying to help you - and which ones just want you to sign up as quickly as possible.

Struggling to pay your credit card bills is difficult enough. Settling your credit card debts can be even that much more stressful! So make sure you "do your homework" and find out as much information as you can.

Who is the best candidate for debt settlement? If you fit one or more of the situations below, then you should probably check out debt settlement as an option for getting out of debt:

• If you cannot pay your bills any longer.

• If you are more than 30 days behind in your payments.

• If you've had a financial emergency (like losing your job).

• If you're seriously considering bankruptcy

So, have you had any good or bad experiences with a debt settlement program? Have you learned any tips for getting out of debt? Or do you have any questions (I've used debt settlement so I fit into the first category above)? Use the comment section below to post your questions or comments.

Cutting back on your spending and lowering the amount of debts that you hold is difficult for someone who wants fewer bills to pay. Debt consolidation plans and debt relief methods are many and have a lot of benefits and to make sure your plans work, you must take care of the following: make sure to come out of debt in three to five years maximum, read through all the documents to well verse yourself with the terms and conditions of your loans and don’t go for offers that seem too good to be true!

If you believe that your finances have really gone down the drain, try to make use of a reliable non-profit credit counseling agency that can give you advice and negotiate with your creditors on your behalf.

If you have other expensive debts to pay then what you can do is to refinance your home mortgage loan and use the additional cash you can borrow to pay these expensive debts off. You can even consider taking out a home equity line of credit or a fixed rate home equity loan. The pros and cons of this option are listed below.

1). It is possible to have the interest on home loans deducted while that is not possible with credit card debts.

2). You can save more money by shopping carefully and getting a good deal on closing costs and interest rates.

3). Typical credit card bills have double digit interest rates, and you can lower them just by switching debts to a home equity loan.

1). Extending the length of time you’ll be in debt could mean that you are paying more money over the long run.

2). A variable loan rate means that if your interest rate could go down, it could also go up as well, so be prepared.

3). Knowing that you are capable of stopping your habit of over-spending and are capable of paying off the debts is extremely important as well, so if you can't control spending, a loan won't help much.

(My additional "con": If you can't make your payments you risk losing your house, so consider this option carefully!)

Another crucial tip is that the money you get from refinancing or from tax refunds should be used to create an emergency fund, the basic purpose of which will be to use as a prepayment against your home loan or to boost your retirement savings. Or in case of a financial emergency such as an unexpected car repair.

A great option that credit card holders have is that they can consolidate their debts by calling their credit card issuers and asking them to give you a better deal. These lenders do know that getting consumers who pay their bills on time is pretty tough and they are often willing to oblige you. Don’t forget to ask them about getting an annual fee waived or lowering the interest rate on new purchases or getting special rates on any new balances you transfer to their cards.

For your lender to give you assistance, it is imperative to be making all payments of your bills regularly in order to establish a reputation of reliability. Another important tip is to plow all of your savings back into your debts and save your credit card score by avoiding applying for too many cards at the same time.

This is a guest post by Richard Jacobs, who has been a chief editor since early 2007, and he currently works for MyDUIattorney. A website that helps you to find the right DUI lawyer. You can search for a New Jersey DUI Attorney or for a Los Angeles DUI Lawyer online, anytime!

When I first heard that the US government was going to update their rules for debt relief companies, I thought "here we go again". After all, it seems like every time they get involved with the financial industry, something goes wrong (bank bailout, new credit card rules - you get the picture).

So it's safe to say I am not a big fan of government involvement.

Even the title of the new rule is a bit misleading, or at least misguided: Telemarketing Sales Rule. Come on, who uses the term "telemarketing" any more? And what about the Internet and its role with these new rules? It just sounds so outdated.

I know, I get it. It's an update of a previous rule. And there are legal issues involved, so these rules can't sound too informal.

When you look at the content of the rules, it actually makes pretty good sense for us consumers. Too many debt relief companies (especially those offering debt settlement) charged their fees upfront, before doing any work for their customers. And too many failed to tell the complete truth, by not letting consumers know how their service really works, how it negatively affects credit, etc. And WAY too many people dropped out before getting out of debt (probably because of these upfront payments and lack of knowledge).

In the last few years dozens of new debt relief companies popped up all over the place. Just watch TV or a few hours, and you'll see at least a couple of ads for credit card debt services. So the time was right for something to be done.

Overall, I do think that these new debt relief rules WILL help consumers quite a bit.

Of course, its too bad that it came to this. But these companies lived "the high life" for way too long, collecting money and misleading people over and over again. They had their chance. The only question I have left is:

Who will be watching these companies to make sure they are following the rules? Or will there only be consequences when someone complains?

If all goes well, hopefully the end result will be that the "junk" companies will go under, and the good ones will survive. Most of the good ones probably won't have much trouble complying with these new rules. Because what makes them good is the fact that they actually perform a valuable service, and get a good reputation because of it.

But if you need professional help with debt, you still have a responsibility to do your own research. Even with these rules, some companies will be good, honest companies. And others won't. So what should you do when searching for a quality debt relief company?

• Ask lots of questions. About how their debt reduction process works...About how your account will be handled...About their fees...About their customer service...About anything else you want to know. If they don't want to answer your questions, or give you vague answers, move on to another company.
• Get everything in writing. Before you sign anything or send in any money. And make sure to read it carefully. There's no excuse later on for any problems because you didn't take the time to read the contract.
• Check out the company's rating. Go to Google.com and type in the company's name. Visit the Better Business Bureau's website. Ask for references. The more information you have about the company, the better.

It stink being in debt. But it stinks MUCH worse if you get ripped off while trying to fix the problem. So while these new rules will help reduce your chances of getting burnt by an unethical company, don't just rely on them. Do your own research, too.

So, what do you think about these new debt relief rules? Let us know in the comments below.

Ever since “the great recession” hit, consumers have seen their credit card APRs skyrocket to out of control levels. For decades it was rather easy to get cards that had rather reasonable rates below 8 or 9%. But nowadays, you are lucky if you can find one that has a rate of “only” 15%. And to add insult to injury, that’s only if you have a tip-top credit score… everyone else is getting stuck with even higher tiers.

Why the gravy train isn’t coming back...
I’ve noticed some people on my forum that post messages like “My APR is high now but once the recession is over, I’m sure my rate will be much lower.” Unfortunately, this is just wishful thinking that is not based in reality. To put it bluntly, the days of cheap credit cards are gone for good.

Today’s credit world is much different than it was in 2007, 1997, or any other year credit cards were in existence. Here’s why the industry has been permanently changed:

Credit Card Reform
Make no mistake about it, the Credit Card Reform Act of 2009 was a major win for consumers. Some of the tricks and traps like double cycle billing and balance transfer bait ‘n switch offers are now illegal. But unfortunately, this also means that credit cards are now less lucrative for the banks. They are greatly restricted in when they can raise a customer’s APR, so they’ve come up with a new solution – just charging higher interest rates for everybody!

Greater Risk Control
Until the economy collapsed, banks had no logic to their lending. They would literally throw money at anyone with a pulse… they just assumed everyone would and could pay them back. Then of course, they found out the hard way the consequence of those reckless lending decisions.

Now that we’re in the post-crash era, banks are operating in a totally different way. There’s greater risk control by restricting available credit and charging higher rates. If you think this is only applicable to those with bad to average credit, think again. Even those with the best scores are treated the same. I have an 800+ FICO score and not only has the credit line on my Starwood American Express has been cut significantly, but I have been hit with a series of rate hikes – it now stands at 15.24%. Customer service told me that is the absolute lowest rate tier for the Starwood American Express, so I don’t even want to know what those with lower credit scores are paying!

Rewards & Cash Back
If you think cash back credit cards are automatically a good thing, think again. Why? Because that money has to come from somewhere and it’s coming from you. We subsidize the cost of these cash back credit cards with our interest rate payments, late fees, etc. In turn, banks actually use higher APRs to offset the costs of their reward programs.

If you think the solution is to simply find a non-rewards card to carry your balance on, good luck with that! I have done hundreds of credit card reviews and practically every major credit card on the market (Visa, MasterCard, American Express, Discover) has some sort of rewards programs. The banks aren’t going to get rid of these rewards because they help them drive up business; they incentivize people to spend more on credit cards. So these program are here to stay and you are helping to foot the bill with your high interest rates.

What should you do with uncontrollable credit card debt?
If you are buried up to your eyeballs in credit card debt, unfortunately the situation is now even harder to overcome on your own due to the higher rates you’re being charged. Eventually, you’re going to have to draw the line… are even the minimum payments too much for you to handle? If you truly are in over your head, you should probably consider getting a helping hand. Talk to Kris, the owner of Debt-Tips.com, to see what he recommends.

The above post was written by Michael over at CreditCardForum, a website for credit card reviews. Hopefully you learned a few tips regarding the ugly truth about credit card interest rates and why they aren’t going to get any better.

Whenever you see the term "debt settlement" it creates some type of controversy - either "its a scam" or "I tried it and it made my problems worse" or some ad promising "get out of debt and save 50% or more".

Lets set the record straight: debt settlement is a legitimate debt relief option for certain situations. It's not an easy way to get out of paying what you owe. It's not an easy way to reduce your debt just because you went crazy with the credit cards. But for those who are getting way behind in their payments, it's potentially a very real way to avoid bankruptcy and save you from financial ruin.

But there's a problem.

Most of the companies out there don't tell you the truth. They just try to sign up anyone with some debt. Then start charging outrageous fees. Don't explain to you how debt settlement really works. Then when the process starts causing you some pressure, you back out.

By then, they've got their money. And you've got nothing but more debt.

BUT......

It doesn't have to be that way. There are debt settlement companies that won't rip you off. But instead they will properly educate you. And will help you get real results. If you really fit the profile of someone who can benefit from settling your credit card bills.

So, how do you find honest advice about debt settlement?

As I state over and over again, do your homework!

• Ask lots of questions
• Get everything in writing before you send in any payments
• Actually read what you are signing (and ask more questions if you don't understand)
• Check references, check the BBB rating
• Shop around and compare companies & their fees
• Above all, realize that this is NOT an easy way to get out of debt and avoid paying what you owe

If you choose not to do any research, prepare yourself for a very stressful experience!

SERIOUSLY NOW - Are there really people out there who think there's some easy way to get the banks to ignore the $48,000 in debt they've built up over the last few years and just say "Hey, it's ok Bob, we'll just forget how much you owe us and let you pay if off for only $16,000 and save 66%, just because you're a nice guy". I guess so.

Sadly, stories like these don't get any good publicity. All you read about are the stories about poor old Bob from some little town who got ripped off.

P.S. Shameless plug: Here's one of the pioneers of the debt settlement industry, a true expert in the field - Charles Phelan, owner of ZipDebt.com. Read for yourself the results he's helped consumers achieve the last few years.

If you've had success with another company, let us know in the comments below.

Throughout my childhood and well into my adolescence, my parents struggled with debt of all kinds, especially credit card debt. Witnessing them go through such money travails, I told myself early on that I wouldn't make the same mistakes they did. Although I feel as though I would have been much better off had they not made these debt-inducing mistakes in the first place, I think, in the end, that had I not witnessed their mounting debt myself, I would not have realized what a danger credit card debt can be.

While most of my peers in college excitedly nabbed credit cards when the going got tough--as it inevitably does as a college student--I simply did without. Of course, this can be difficult when all your friends want nothing more than to go out to eat or drink constantly, but in the end, it paid off. Still, since credit cards are so tempting during those college years, when adolescents get their first taste of "freedom", I think it's absolutely critical that parents teach their children about responsible finances very early on. Here are a few tips.

1. Talk to your kids about credit cards before they go to college.
   It's better to talk often and talk early about the pros and cons of credit cards. College students aren't a particularly responsible lot, or at least not yet, so suggest to them that it's better to wait until after college, when they have the resources and presence of mind to pay them off every month.

2. Don't send your college kids money if they run out.
   It sounds cruel, but in the end, it will teach them how to budget. Determine before your kids head off to college how much money they may need for books and personal expenses. While it's okay to be a bit more flexible during your kid's first semester in college, when both of you are still trying to figure stuff out, put your foot down later. College is the time to learn the art of saving and resourcefulness, so that they'll be fully prepared once out in the real world.

3. Practice accounting of expenditures with your child.
   This is one habit that I never learned early and I struggled with later on in life. Show your child how to keep a log of every purchase they make, so that they have an accurate, instant idea of how much they've got in the bank. Relying on online statements only sets you up for over-drafting, and this is something I certainly learned the hard way.

In the final analysis, getting out of debt is tough but doable. It's far easier to never accrue debt in the first place. Even if you already made those critical mistakes for which you are paying dearly now, help out the next generation. Don't let it happen to them.

This guest post was contributed by Jena Ellis, who writes on the topics of Online Certificate Programs. She welcomes your questions and comments at her email Id: jena.ellis20@gmail.com.