Responsible Credit Use

• Credit cards are not loans. Using your credit card to carry large balances you cannot afford to repay within one to two billing cycles leads to rising credit card debt. The best use of your credit card is to make small charges to your card each month and repay the debt before the end of your grace period. Your grace period is the amount of time you have before interest is applied to your balance. Following the Credit Card Act of 2009, all credit card companies must offer a minimum grace period of 21 days.
  
  

Paying Down Debt

• Paying down your debt can take years if you only make the minimum payment on your credit card each month. Free credit card repayment calculators are helpful in allowing you to determine the length of time it will take you to repay your balance. Adjust the calculator to the length of time that creates affordable monthly payments. Dorothy Rosen of Bankrate also recommends calling your lender to see if you can get a lower interest rate. If you are a good customer, meaning your bill is paid on time each month and you don't have a history of exceeding your limit, your credit card company may be willing to lower your interest rate.
  
  

Cutting Back

• If you want to repay your debt in a short period of time, you may have to cut back in other areas of your household budget. "If gourmet coffee, magazine subscriptions, clothes you don't need, dinners out, gifts and trips are more important to you than being debt free, your head's not in the right place for the job ahead," explains Rosen. Getting rid of your credit card debt takes commitment and sacrifice until your balances reach zero. Use any surplus money you receive such as tax refunds or bonus checks from your employer to pay down the balance of your loan.
  
  

Getting Rid of Debt

• Awareness of how credit cards work can help you stop your debt from accumulating further. Consumers generally spend more with a credit card. According to national talk show host and financial adviser Dave Ramsey, consumers spend 41 percent more with credit cards than cash. Psychology Today notes that shoppers are less likely to monitor prices when shopping with a credit card than with cash. Understanding these facts about spending habits can help you monitor your credit card habits and make changes to how you spend. Charging more than you can afford to pay on your credit cards could mean you have problems handling debt.