I have around $7,000 of credit card debt. I'm a full time student and I want advice to get it under control.

The debt is spread over 2 cards, the most on an American Express. I've used the cards for paying rent and other living and school expenses that my student loans didn't cover. I've had the cards since 2005 and the balance has been increasing some each semester. I haven't ever missed a payment due date, but I usually pay just a little over the minimum amount due (which for the Amex is now around $120, the Mastercard isn't bad, it's just $15). I stopped using both cards this summer because I didn't want to add to the debt. I've tried getting a job at a bunch of places, but my school schedule makes it hard to get a decent one. Even after 3 or 4 months of making payments though since this summer, it doesn't seem like the balances are decreasing much at all. There's some finance fee around $80-$90 that takes away most of the payment I make each month. How can I get things under control? I need a job. I've stopped using the cards. But nothing seems to be going right so far.

Sounds like you've built up a good credit record. The problem as you've noticed is most of your payment is going to finance charges.

The best solution is to look for a lower interest card and transfer the balances to it. For that I have to suggestions:

1. Go to www.cardweb.com or www.bankrate.com and look for cards offering 0% balance transfer or low interest rate (like 3% to 5%) for life of the balance. Then do a balance transfer.

2. If you are a student, see if your school has a credit union available. Often schools faculty and workers are eligible, and so are students. Credit unions have much lower standard interest rates then commercial banks on their credit cards. Being a credit union member is a good idea anyway, as their services are much cheaper then a big monster megabank.

Then after finding a lower interest card, even if you make the same payments more will pay off principal each month.

What else are you spending your money on? Start tracking your money and learn exactly what you spend it on. Even if its a 10 cent piece of gum make note of that.

Then see where you can cut back. Buying real food instead of fast food ect less trips to starbucks.

Now, take the extra saved money and start putting it toward your cards. Theres two ways to pay off the debt.

Some say tackle the bigger interest rate card first this way you pay less interest on the balance.

Others say tackle the card with the smallest balance and get it paid off. Then take the amount you were using on the smallest balance and put that toward the bigger balance along with payment you were already putting down on it.

the later is also called snowballing

either way would work, its up to you which to pick.

Keep working at it, you'll get them paid off.

You are in a common situation. Minimum payments required on most cards barely cover the interest due for that specific month. Thus, you don't get ahead. You simply pay for the cost of using the money. The only way to get this under control is to find a way to make money and make substantially higher payments until the debts are retired.

You might also check around for deals on "zero balance transfer cards". With some of these cards, you can transfer your current balances to the new card and pay a zero interest rate for up to twelve months. If you do that, simply do not use the card, and use THEIR money free for twelve months. At least, for that year, every penny you pay will reduce your principal with nothing going to interest charges.

It takes a very, very long time to pay off your credit card debt if you only pay the minimum. Most card issuers set your minimum payment at 4% of your debt -- so a $5,000 credit card balance with an 18% interest rate would start out with a $200 monthly payment. But if you only make that minimum payment, it will take 12.5 years to pay off your credit card debt, during which time you'll pay the card company a total of $2,916 in interest -- more than half the cost of the whole loan in interest payments. And that's assuming you don't make any new charges on the card! Credit card interest is wasted money that you could have used instead to help reach your financial goals.

First, if you have been paying on time call the customer service number for your card and ask them for a lower interest rate. This ten minutes could save you money. Nearly 70% of people who do this actually get a lower rate. Next, any extra money you have either pay to the card with the higher interest rate or the card with the lowest balance if the two balances are a lot different (I'm assuming yours are because of the large difference in minimum payments.) As soon as the first card is paid off pay as much as you can on the other card.

Many people have fallen into the easy credit trap, hopefully you have learned a valuable lesson early. Namely, you can't live off a credit card.

You are doing everything right! It took time to go into this mess and so it will take time coming out of it. Think of it as paying yourself to be free of this. It will work out. I say a year of this and it should be over. Focus on limit and success. You go for it!!! Success!

Why can't you live on campus? That is usually a cheaper alternative to living alone and you didn't say anything about having roommates.

Once the balance gets so high, it gets very steep and hard to pay off, all you can do is keep paying them off or see if you can open up another credit account that has a 0% APR for 12 months or so and transfer the balance, but make SURE they are not going to charge you a transfer fee to do it (which can be as high as 3%).

You don't really have a choice but to make some major lifestyle changes until you can get through school.

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Call both cards and ask for a reduction in interest rates this will help payoff the cards sooner. Or you can always apply for a low interest card or a 0% card and see if you can transfer balance to pay it off.

You don't have such a hige debt, you should be able to handle it by yourself in no time. Here's a great article on how to do so: http://www.usaindebt.com/2007/10/02/gett...