The least expensive and sometimes most effective solution is the personal savings plan. This kind of solution of how to pay off credit card debt encompasses any type of solution that does not involve a third party directly taking hold of the funds of the borrower.A savings plan can be made by the individual borrower him or herself or it may be done by a hired professional. In these savings plans there are usually two main components: 1. A redistribution of assets to give to the borrower a lump sum that he or she will use to get him or herself out of immediate trouble, and 2. The formation of a long term budget to make sure that the borrower can continue to make monthly payments past the minimum on the remaining credit to be paid down.

Usually the redistribution of assets means a sale or an auction of some kind, and in many cases a temporary scaling back of the lifestyle. The budget plan usually details many cutbacks as well; however, many people find that it is rather easy to give up expensive luxuries and often find much cheaper alternatives, such as buying an espresso machine instead of going out for daily coffee.

The debt consolidation program is usually also handled by a specialist third party. The difference between a debt consolidation program and a debt management program is that the creditor that is owed can actually change in a debt consolidation program.

Debt consolidation refers to the process of restructuring a loan on the creditor’s side by getting other creditors to sell their interest in a loan to another party who is willing to accept a lump sum payment that is lower than the original principal borrowed or accept different payback terms to getting rid of that credit card debt.