With the global economy coming down to the freezing point, so many of us have found ourselves in a situation with horrible credit card debt. But you can always resolve the problem if you act smart.

The very first thing you need to do is, call up your credit card company. Let them know about your situation and tell them you cannot meet their demands but are eager to pay out all the interests. Ask them to let go of your fines and other late fees and stuff. Ask them if it is possible for them to lower the interest rate. If the customer service representative fails to help you, talk to the manager, they might be able to help you out.

Once you are done speaking with the company, make a plan about what are the things you are going to buy. At the beginning of the month, you should know how much you are going to spend and how much interest you will have to pay. See what are the expenses that you can cut and make some savings. You might consider, eating out for a lesser number of times every month for a few months.

Be smart in paying off your debts. Pay off the debts with higher interest rate first and go down the list gradually. This will help you to save a lot of money.

Make it a habit, and lock your credit card in a drawer and keep the keys in a safe. Use cash money to do shopping. Use the credit card only if it is dead serious.

If you can make all these happen, you are likely to set yourself free from all the credit card debts before you can realize it.