So you have a boatload of credit card debt and you want to pay if off ASAP. Well for starters, that’s a good mindset for you to have! Paying interest on credit card debt is one of the biggest wastes of money ever…

Let’s say you had a $10,000 balance at an 18% APR. The minimum payment is usually interest + 1% of balance (to put that in perspective, that would be $250.00 for the first month in this scenario).

Under those circumstances, it would take you 342 months and you would have paid an extra $14,423.30 in interest! So that $10,000 balance actually cost you a total of $24,423.30!

Some banks have a different formula for calculating the minimum payment, but you get the idea… it’s a total ripoff! Here are 7 techniques for how to pay off credit card debt fast…

(1) Prioritize your credit card debt

First and foremost, if your debt is spread across multiple cards, organize them from the highest APR to the lowest APR. Then you will want to make sure you really focus on using the techniques below to wipe out the debt on the highest rate card(s) first.

(2) Earn 1% on savings account while paying 10% on credit card debt?!

It’s unbelievable how many Americans carry credit card debt at 10% to 20% (or higher!) while they keep money in their bank account that is only earning them 1% or less.

Sure, we all need backup funds for emergencies, but this is where you need to weigh the pros and cons. Figure out how much cash do you comfortably need on hand for things like mortgage/rent (that you can’t pay with credit cards). For everything else – like unexpected car repairs – you can probably pay for with a credit card if need be, so why keep that money in the bank when it could be used to pay off credit card debt and save you money on interest?

(3) Use retirement account to pay off debt?

On a historical basis, it’s unlikely that your retirement account is raking in gains of 10% to 20% annually. So if you’re paying that much interest on your credit card debt, you may want to investigate whether it would make sense to withdraw some funds from your 401k to put towards that credit card debt.

However keep in mind that this is not always the best way to pay off credit cards. You will almost certainly owe tax on any withdrawals. Now there are some “hardship withdrawal” exceptions which some people qualify for that might be penalty free (i.e. if you become totally disabled, medical debt that exceeds 7.5% of your adjusted gross income).

If you want to consider this technique to pay off credit card debt, you absolutely need to talk with a certified financial planner. Rules and laws surrounding withdrawals are complicated and constantly changing, so you should get expert advice.

(4) Get a second or weekend job

The quickest way to pay off credit card debt is to increase your income… but of course that’s easier said than done! However it is possible, here a couple ways to do it…

If you work an hourly job, plead with your boss to see if there’s any way you can pick up some extra hours. Even offer to pick up crappy shifts, if necessary. I recommend being honest about why you need to do this… you’re paying off credit card debt. If the debt was incurred from something like medical bills, don’t feel bad about playing up the sympathy card.

If you have a salaried job, then outside of a raise or promotion there probably won’t be any way you can increase your pay. So what you will want to look into is getting a second job, even if it’s only for the weekends. Sure, it may only earn you a few hundred dollars extra per month, but that’s all money you could be using to pay off debt faster.

(5) Reduce your monthly spending

Look for expenses in your monthly budget you can trim or even eliminate completely. The gym membership may not be worth it if you only go a couple times per month… instead go running in the park, exercise at home, etc.

The biggest money drain for most Americans is eating out. It’s easy to get in the habit of dining out once or twice a week… over the course of a month that equals a lot of money that could be used for paying down credit card debt. Even fast food costs add up quickly – buying a $2.50 coffee 5 days a week equals around $648.00 per year!

Need an easy motivator to spend less? Just remind yourself this; Every $1 less you spend saves you up to $2.50 in credit card debt. (per the example at the top)

(6) Sell stuff you don’t need (and stop buying it)

Yes, selling stuff you think you need can be painful, but it’s best for you in the long run.

The American culture seems to be obsessed with the idea of accumulating stuff we don’t actually need. All of us are guilty of it to at least some degree. Whether it’s collectibles, gadgets, handbags, or something else… they’re all things you don’t really need.

So go to your closet/garage/basement and identify the things you could really do without. Then hit up eBay and Craigslist to get rid of them and raise some quick cash. Heck, for some people this step in and of itself might be all that’s necessary to pay off your credit card debt. One forum poster decided to sell his snowmobile and it ended up being enough to pay off all his credit card debt!

Understanding this concept is without a doubt one of the most important techniques for how to pay off credit card debt… and how to prevent raking up new debt in the future!

(7) Reduce (or eliminate) your interest

If you’re taking a lump sum from your savings to pay off credit card debt fast (like this week) then this advice that follows won’t be applicable to you. However, if it looks like it’s going to take you at least a few months to completely eliminate your credit card debt, then keep reading.

Chopping your interest rates are a crucial step in fast tracking the process to becoming debt-free. Because whatever techniques you are using in your journey to be debt-free, it will be even faster if you’re interest isn’t accumulating so rapidly.

There are basically two ways to do this. You can call up customer service for your credit cards and plead for a lower rate. Sometimes they will knock off a couple points, but these days they will rarely give any sizable reduction.

The second option is to use balance transfer credit cards. Sure, you will have to pay a balance transfer fee of 3-5%, but if that means having 0% interest for 12 to 18 months then it’s definitely worth it. Check out our constantly updated listing of the 0% balance transfer cards to see what deals are available right now.

How do you think your credit habits compare to other Americans? Today CNN.com’s “Quick Vote” question is “Are you leaking cash by carrying credit card debt?” As of right now, 229,380 people responded – nearly a quarter million – and although this poll is not scientific and only covers CNN.com readers, I believe it’s a fair representation of the credit card debt in America. Here is how people responded:

• 50% responded “No I pay my balance monthly”… so half of Americans have zero credit card debt.
• 8% said they do have a balance, but it’s less than $1,000.
• 14% replied say they have a balance of less than $5,000.
• 9% responded they have less than $10,000.
• 20% said their credit card debt is more than $10,000.

Are these figures bad or not? Well of course, less debt the better. But it is important to note that many people today finance “big ticket” items like cars, medical procedures, and others on their credit cards entirely, because they are able to score a lower interest rate than, say, a traditional bank loan like they did in the past. Others merely float debt that they could otherwise pay off, because they have it on a 0% balance transfer credit card… so for strategic purposes they do not pay it off even though they have the money. In those ways, these figures may be inaccurate since they are including quasi auto loans, home renovations, and more which are on credit cards.

Whatever the case, one thing is for sure and that is that the above numbers are another example of how the working middle class is being squeezed, and often find the need to resort to credit to pick up the slack.

For years congress has been trying to pass a Credit Card Bill of Rights but the Senate repeatedly shoots it down. The Federal Reserve knew something had to be done so they took matters into their own hands on Thursday and set guidelines for the most controversial practices creditors do today. Some of the highlights are:

• Unless a payment is more than 30 days late, creditors will no longer be able to change interest rates on existing balances.
• There must be at least a 21 day grace period to make a payment before the credit card company can slap you with a late fee.
• Currently when you make a payment, it is applied to the lower interest rate balances first (such as 0% balance transfer offers) before it is applied to your higher interest rate balances such as normal purchases. Once the rules are in effect, it will be the opposite, and all payments (beyond the minimum payment) will be applied to the higher interest rate balances first.
• Customers must be notified 45 days before any changes to terms, such as fees and APR. Currently credit card companies are only required to give a 15 day notice.
• Double Cycle billing is prohibited. This is a practice where some creditors calculate interest based on the balance of the previous two months. So you may pay off your balance one month, but the next month if you carry a balance, you would be charged interest for both months.

Unfortunately, these rules won’t go into effect until July 2010. If you agree with us that there needs to be reform before then, contact your congressman and senator to tell them how you feel.

As we are all painfully aware, healthcare costs have been climbing double digit rates. We’re paying more money for less care. You would think so called “non-profit” hospitals would try to help us out. Not the case with Kaleida Health, which operates five hospitals across the state of New York. They now market lines of credit to cash strapped customers.

G.E. Money’s CareCredit is what they’ve been pushing, which they claim lets you “pay for it over time with low monthly payments that are easy to fit into your monthly budget.” Obviously I am pro-credit, but this is crossing the line. We should not be taking advantage of the sick by profiting off them every way we can.

In 2007, Americans spent an estimated $250 billion on out of pocket medical expenses. It’s no wonder 24% of that spending is going on credit cards.  Many of these people put those charges on their cards simply to earn rewards, and they pay their bills monthly, but still many are not.  Fortunately, none of the major credit cards are marketed for healthcare.  We can try and make the credit card companies the scapegoat, but honestly they aren’t to blame. It’s the politicians, pharmaceuticals, insurance companies, and “non-profit” hospitals like Kaleida that have pushed us to the brink, forcing us to find other ways to pay our healthcare costs.