Recently, I came across a magazine from the year 1992. Flipping my way through trans-fat laden recipes, silly fashions, and super big hairstyles, I had a jolly laugh. That is until I found an article about reducing personal credit card debt. I assumed debt relief methods would have changed considering the two very different economic pictures between now and then. Such a contrast in the financial market would result in different approaches to debt relief, right?

Surprisingly, basic credit card reduction principles haven’t changed very much since 1992. You might think that during times of loose credit that debt reduction would be different than in times of tight credit. However, it appears my assumptions were mistaken.

Standard money management methods apply as always; spend only the cash you have on hand and put money away every month. Basic economic principles do not change over time no matter what shape our credit industry is in today as opposed to a decade or more ago. What’s changed is we have become dependent on credit cards.

An article about debt relief probably didn’t get much notice in a magazine in 1990. However, with today’s credit crunch I’m sure there are many more people picking up magazines and looking frantically for advice on credit card reduction.

So, what are the basic strategies for a family like yours to get rid of their credit card debt for once and for all? Briefly outlined, here are the steps you need to follow to get on the right track. Amazingly, these 6 steps are just as true today as they were back in 1992:

1) Destroy Your Credit Cards – This may hurt a little if you’re used to having a never-ending supply of credit, but it’s critical. Get rid of those department store cards first, than when you get to your Visa, Master Card, or American Express, stop. Check out the terms of your major credit cards and determine which one you should keep for emergencies. You’ll want to be able to make reservations, use the kiosk at the airport, etc., so you’ll need one major credit card. Cut the rest of the cards up now.

2) Do Your Financial Math – Take a good, long look at your income. If you haven’t already created a family budget, this is the time to start one. Map out your monthly household expenses that keep your family sheltered and fed. Take that money, subtract it from your monthly paycheck and you are left with your “disposable income.” That is what you need to know before you take your next step. How much money do you have each month to apply to your credit card debt?

3) Time to Make the Dreaded Call – Calling the credit card company is the most feared but most critical step to reduce your credit card debt. Making minimum payments on your credit card each month won’t bring that balance down. The interest alone will continue to grow beyond your current balance owed. Pull out all your credit card statements, take a deep breath, and call customer service. Tell them that you are paying off the balance, but that you can only do so if they reduce the interest rate and reverse any late fees or overage charges. Most credit card companies will work out a payment plan for you. Be prepared to negotiate, be firm, and be persistent. The credit card company wants your money, so they will be willing to get it on your terms if that’s the only way possible.

4) You’re Going to Need to Sacrifice – Perhaps you’re expecting a tax refund, or a bonus, or some other “found money.” We all like to have a little extra money to spend, however, this time it’s different. Sorry to rain on your parade, but you have a goal of being debt-free and you have committed every penny to spending down your debt. Look at the interest each credit card company is charging you, even after negotiating a lower rate, and that money becomes more valuable than ever. Your found money is going to have a much bigger return if you use it to reduce that interest-laden debt.

5) Commit to Your Plan – Paying off your credit card debt this way doesn’t offer any instant gratification. It could take a year or more to see any real benefits. The commercials may tell you that you can be debt free in six months, but that is simply not true. It took you some amount of years to get into debt, it will take you some time to dig your way out. You may see some progress toward your debt-free future in about six months or so, but beware of celebrating too soon. You may feel like treating yourself to an expensive reward, but resist the urge. Just add up all the interest you’ve been paying over the last six months you’ll see that the credit card companies are still enjoying way too much of your money. Skip the splurges and stick to your plan so you’ll once again enjoy your own money.

6) Consider a Debt Consultant Only After Serious Research – In the last decade, debt consultants have blazed a trail for themselves. Offering credit card relief “quickly and painlessly” is often heard in their commercials, but we know that’s not possible. Do careful investigating before you decide to hire a debt consultant. Interview them in person and ask detailed questions like how much of your payment is actually going to the credit card company and how much they keeping. If they tell you not to worry, they’ll take care of everything, you need to stop the interview and keep looking. Any debt consultant that you consider should be checked out with the Better Business Bureau. You may also wish to ask for advice on choosing a debt consultant from reliable family and friends.

When credit became too easy to get, many of us found ourselves with too much credit card debt. Now, we are faced with the unpleasant and difficult task of getting ourselves out of debt. The methods we use to free ourselves from credit card debt are tried-and-true for many years. With determination and a well laid out plan, credit card debt will be a thing of the past and financial stability can finally be yours.

Nicole Dean is the mostly-sane mom behind ShowMomtheMoney.com – a resource dedicated to helping moms achieve success working from home. She welcomes you to learn more ways to save money in her Frugal Moms section.

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