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(Today's post is a guest post from Miranda Marquit of DestroyDebt.com.)

Credit card debt can often seem overwhelming. Indeed, by the time your interest charges are deducted from your payment every month, there is very little left over to be applied to the principal -- especially if all you pay is the minimum. Even when you put a little extra toward your credit cards, the balances seem to fall with depressing slowness.

This is why the 0% credit card is so enticing as a method of debt consolidation. You transfer your other balances to a 0% rate, and often there is a special "balance transfer" rate that takes effect after the 0% introductory rate is over (usually anytime between six and 18 months after you get it). It's amazing to watch how much faster your credit card balances dwindle when you aren't paying interest. But you do need to be careful. Without the proper approach, you can actually end up in worse shape by getting another credit card, even if it does have a 0% APR.

Things to watch out for with a 0% APR credit card

One of the first things to realize is that the introductory rate is only good if your account remains in "good standing." If you make a late payment, fail to pay the entire minimum or go over the limit, most credit card companies will immediately revoke your 0% rate. Instead, you will automatically be bumped to the "default" rate, usually somewhere between 18.99% and 24.99%. Make another mistake, and you could see your interest rate soar even higher to 29.99% or even 31.99%. This can make paying off the balance exceptionally difficult.
Another common pitfall is to start using your other credit cards again, without paying off the balance each month, once you complete the balance transfer. Wracking up more debt before the original debt is paid off can put you in an even more devastating position than you were in before. In order for debt consolidation to work effectively in terms of getting rid of your credit card debt, you need to change your habits. No amount of debt consolidation will work if you haven't begun making serious changes in your lifestyle.
Here are some tips to help you as you work toward getting out of debt:

• Make a budget and stick to it.
• Concentrate on one debt at a time. Pay it off (while still paying other minimums) and then move on to the next debt.
• Live within your means.
• If you continue to use credit cards, pay off new charges in full each month.
• Impose a waiting period on large credit card (or any) purchases to test if you really need it.
• Stick to it! Set goals and give yourself small rewards when you reach them.

It is possible to get rid of your credit card debt. But whatever method you choose, be sure to carefully consider your options and make sure that you change your habits so that you can stay out of debt.

Miranda Marquit edits information on debt consolidation for DestroyDebt.com and writes on personal finances for YieldingWealth.com.

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Welcome to the Saturday Roundup of Credit Withdrawal posts and other interesting posts around the blogosphere.

I'll be out next week at Scout camp. With the sad news about the Scouts that were killed in Iowa (not that far from me) it's a bittersweet reminder as we get ready to go. I've got some articles lined up, and a guest blogger post as well, so there should be interesting things to read while I'm away. Just remember that comments and such may be held while I'm disconnected.

Also got a chance to see Kung Fu Panda last weekend. Very good movie. I'm a big Jack Black fan, and this was a cute movie. Maybe not an Incredibles or Toy Story, but much better than Happily N'ever After.

From Credit Withdrawal

• June 13: Congratulations to One of Our Readers (1)
• June 10: Where’s My Money?!?? The Government Holding up the Economic Stimulus Checks (2)
• June 06: Ask the Reader - What’s Your Best Grocery Cost-Saving Tip? (6)
• June 05: Giving the Gift of Health… Insurance (2)
• June 04: The Death-Knell of the Hummer (6)
• June 02: Economic Stimulus Not as Stimulating as Hoped (6)

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Recently I received an e-mail from one of the readers that really put a point on the whole reason this blog is here. After receiving permission to reprint her e-mail, it's included below.

So I just wanted to share with someone I know can truly appreciate it: As of last week, my husband and I have no credit card debt. ZERO!

We've been steadily paying down the mistakes made in college (yeah, paying for that late night run to McDonald's 5 years later because you bought those McNuggets with plastic totally sucks) for a few years now. We have had 3 credit cards literally frozen in ice (if we need them we can get to them, but it has to be worth the effort of digging through the deep freeze and then thawing the sucker out). We paid minimum payments of everything except the highest interest rate account which we paid as much as we possibly could afford to. Once that big one was paid off we started putting as much as we could towards the second highest interest rate card until all we had to focus on was the last credit card. And now it's done. Paid in full. Balance = 0.

This doesn't mean we're debt free. I think I will owe the government for my education until I'm at least 40, but they can't repo my brain, so I'm ok with that. But we ARE icky-debt free. And that's a great feeling.

It CAN be done

Thanks for your blog. It's been fun to read what people think and how they're managing money, etc. It's all lessons learned.

Greta

Way to go Greta!

See, you CAN get rid of that credit card debt and get back control of your life. That's a huge step towards becoming completely debt-free and throwing off the shackles of credit slavery.

Start With the End in Mind

Greta and her family obviously worked hard to get to where they are, and they should be proud of what they've accomplished. It's not easy to pay down/off credit debt, especially when all the credit card companies make it so enticing to get and use. Making a plan and involving the whole family is vital to debt elimination success.

Greta also used one of the tried and true snowball payment plans to maximize her payoff, getting rid of the highest interest rate debt first, and moving downwards from there.

Also, from a follow-up letter;

We did pay down some of the credit card debt using student loans... but again the credit card is frozen in ice so we didn't pay it down just to run it back up again... and I have to tell you student loans are guaranteed never to exceed 8.25% interest. The credit card was at 29.99%. And I think we have something like 15 years to pay off the student loans. The last credit card was paid off with the Stimulus Check... then we went out for dinner and bought a bottle of champagne with cash (see? the stimulus check did encourage discretionary spending). That was the best part: realizing that we CAN survive without the credit cards. We have them if we need them (plane tickets, hotel reservations), but we don't HAVE to use them... not for groceries, or even gas. I sleep much better at night.

Our FICO's have gone up a good bit. The next step is to start making larger payments on our car loans and building our "Buy A House Down-Payment Fund." We're graduating in August (we went back to grad school at the same time, hence, the student loans) and we'll probably consolidate the loans since the Fed is so low.

So that's our success story in a nutshell. Let me know if you want any other information.

Again, I've enjoyed reading your blog. It's been almost like a support group

Greta

It sounds like Greta's got a solid financial plan in place. It should be no time before she and her family are completely debt-free at the rate she's going.

Super Job Greta!!

Do you have a success story you'd like to share with the readers?? Leave us a comment, or send us an e-mail and well be sure to get it published.

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The Economic Stimulus checks have gone out to most of the nation by now, providing a nice little cash infusion in hopes of kick-starting the economy. But what happens if you haven't gotten yours yet? Did they forget you? Send it to the wrong address? Still waiting and worried it hasn't arrived?

When Should it Get Here?

If you filed electronically and haven't gotten your check in the mail yet, it might be time to wonder why. All the electronic checks were scheduled to be send/delivered by May 16, 2008, so it either hit your bank account via Direct Deposit, or something happened.

If you're waiting for a paper check, you still have quite a while before you need to start worrying, based on your SSN.

Note: People who file a return after April 15th will receive their checks later than the above schedule.

How ELSE Can I Miss My Check?

There are a few ways that you can STILL not receive the stimulus check that you need to keep in mind. Other than the normal "delayed, government speed" or "sent to wrong address". You should also receive, separate from the check, both a form notifying you that you are to receive a check, and a form describing how much you are to receive. I got the first one (barely) before the stimulus money arrived, and the second form a couple of weeks AFTER the money got here.

You Owe the Government - Uncle Sam, and the state governments have LONG memories for people that don't pay their taxes. There are currently 39 states that use what's called 'deferment' to seize money, like tax returns, in order to offset previously owed taxes. This deferment is registered directly  with the Department of Treasury, so any checks they cut for you, are first screened to see if they should go to someone else (for some reason). If you owe the federal government or any state government any back taxes, don't expect a check.

Also, if you haven't FILED for a year in which you show income (but would not have had to pay ANYTHING after adjustments) the government can also automatically hold money, based on what THEY calculate you owe. This happened to me some years back, in which they held up $5000 in refunds, while waiting for me to pay for a tax return that never got there. I actually got back $50 for that year, but didn't follow up when I never got the refund check. Turns out THEY never got the tax form I mailed. Long story short, it took nearly 4 months to get things cleared up, during which time they kept my money.

You Owe Child Support -  Along with governments, the legal system can put a deferment on any checks coming out of the Treasury as well. If you're not paying child support, odds are you aren't going to get a check either.

Checking on the Check

If neither of these apply, and you STILL haven't gotten a check when you were supposed to, it's time to start asking around to find out what's the deal. A couple of sites to visit to find out where the check has gone;

• Stimulus Payments: Answers to Frequently Asked Questions
• Where's My Stimulus Payment?

Don't give up, and be persistent about getting what's owed to you. The government is giving you this little early Christmas present, but that doesn't mean they don't make mistakes too. Know how much you're owed, and when it's supposed to arrive.

Did you get your stimulus check, but had to use 'extreme' measures? Share your story and help our other readers!

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With the price of gas going up, the ripple effect is traveling far and wide. One of the most noticeable effects is the cost increase of groceries and staple foods.

No so much that the cost has gone up SO much, but that budgets are having to be tightened because more money is going out to fuel costs. Still, there's numerous articles and interviews talking about how hard it's getting to keep families going like they used to with increasing costs.

One interesting set of interviews on NPR talked to a mother of three, making less than $800/month, and how she's having to economized on EVERYTHING (lot less meat, much more staples like beans, rice, etc).

Another interview with a 'middle-class' retiree talks about living with increasing prices while surviving on a fixed income. Her solution was more bulk-food purchases, along with planning trips more carefully to save in fuel costs.

The final interview was with an 'upper-middle-class' homemaker ($250k/year income, two homes, a business, and some VERY nice cars). Her solution was to shop in different locations. She's shifted from a mainly Whole Foods shopping routine, with it's fresh everything selection, along with the accompanying premium prices, to a more pre-packaged, less-expensive routine.

The pinch is being felt up and down the income spectrum. So this question could help many people with that make-or-break of getting through this tough time.

What is your best/most creative cost cutting measure when getting groceries?

I admit, I fall into the bulk-buying arena. We buy most everything in bulk, and store a lot of it downstairs on our shelves. This is good for things/foods that don't spoil, so we only have to think about what to do for fresh veggies and meat. I'm considering getting a large freezer and looking around for meat in bulk too if things continue to go like they are now.

Let us know your best tip by leaving us a comment!! Help out our fellow readers with your ideas!

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