If you are one of those who are silently suffering from huge credit card debts and have lost hope, you might want to consider the credit card debt consolidation services being offered by various companies and agencies as part of their service packages. You might not realize it but credit card debt consolidation could be your ticket to a debt-free life. Apart from this, other top solutions to consider involve recognizing your problem, acting on it, and changing your habits to avoid racking up more debts. Here are four key solutions to help you manage your debts more effectively.

#1 Use your Credit Card for Major Purchases Only

While it is convenient to not carry cash around, making payments for small purchases is not a good idea. First, you will not only be adding up more debts to your existing ones, you will also likely increase the interest payments you will make for these small purchases. A few dollars a day might not seem like much at present, but when they are summed up in your monthly billing statement, you will be surprised at how much more you will have to pay because of these “small” purchases.

#2 Change your Spending Habits

Do you always shop at the trendiest stores, dine out more than you need to or go to movies during the weekends? If you tally up the expenses you have accumulated through these activities, you will discover that you may have easily racked up hundreds, even thousands of dollars on things that you could actually do without. Instead of dining out five times a week, why not just do so twice a week? If you go to the movies every weekend, you can simply order up DVDs and watch movies at home at no extra cost. If you shop at the trendiest stores, you will pay far more for items that you could get at less pricey retail outlets. Complementary to the first solution above, changing your spending habits will do wonders for your credit card balance.

#3 Pay more than the Minimum Payment Required

Apart from credit card debt consolidation, this is an obvious debt management solution that most people tend to overlook. By paying more than the minimum, you will gradually reduce your credit card balance. If you have the extra cash, you may just go ahead and pay for those purchases as much as your extra money will allow. If you do not have extra money lying around, then just reduce your spending. Better yet, if you do not have money to pay for purchases up front, then do not use any of your credit cards.

#4 Consider Credit Card Debt Consolidation

By far, this is the most effective solution of all when it comes to effective debt management. Essentially, this kind of service works by consolidating all your credit card debts into one loan that you will then pay to the lending company; this company will then distribute your payments to various credit companies from whom you owe money or keep your payment if it has already paid your debts in full on your behalf. What is good about credit card debt consolidation is that they will also provide you with counseling and effective suggestions so that you can combine all solutions detailed above to complement your consolidated loan package.