Credit card debt

If you’ve overdone it with the credit cards, you may need to go on a debt diet to get back on track. Here are some tips:

--Stop using the cards! Only use them for EMERGENCIES.

--Look for little ways to save. Cutting out fancy coffees, parking fees (take CTA instead) and expensive lunches can give you an extra $200 or more a month to put toward those credit card bills.

--If you’re deeper in debt, ask your creditors for a lower interest rate. It can't hurt to try -- especially if they think you are going to transfer your balance elsewhere.

--Consider tapping into your savings to pay off a high-interest balance. It’s not an attractive option, but you may be better off getting rid of it fast.

--Don’t pay less than the minimum (and try to pay much more), and don’t be late with your payments. If you mess up, the credit card companies can use this as an excuse to raise your interest rate, sometimes as high as 30 percent. And because of something known as "universal default," if you screw up on one card, all your other cards can hike their rates on you, too!

--Educate yourself. Check out Bankrate.com -- they have payment calculators, credit card comparisons and great consumer advice -- it’s really helpful information for all consumers, whether in debt or not.

--The card you're transferring the balance to may offer a low teaser rate -- but if it's only good for a couple of months, you might not have enough time to pay it all off before the interest rate soars astronomically.

--Watch out for balance transfer fees of as much as 4 percent. That means if you transfer $5,000, you're paying $200 in fees -- NOT a great deal.

--Credit card issuers typically will apply your monthly payment to the lower-interest charges first, meaning your payments will go toward the balance you just transferred using the low teaser rate. BUT if you keep shopping, those new purchases are going to get hit with higher interest rates. And none of your monthly payment will go toward that.

--Bottom line: Read the fine print and decide what's right for you. And stop shopping with your cards.

--Formal credit counseling is a good option for people who are really deep in debt.

--Find a reputable credit counseling agency -- it should be non-profit and funded by the credit industry. They will work with your creditors to have them cut the interest rates and waive fees and penalties.

--You write one check a month and they pay your creditors for you.

--Watch out for frauds! Check out the company with the BBB and other consumer authorities. Anyone promising a one-size-fits-all plan or a quick fix is a con artist.

--It's slow and tough, but it will work.

--Here is a good tip sheet on credit counseling from the Federal Trade Commission: FTC.gov

--And another good tip sheet from the Better Business Bureau: BBB.org