Double miles or free gas? Long distance or hotel discounts? Credit card companies and big retailers offer a lot of great things in exchange for your business. If used correctly, the benefits can be great. The question is, could Delta stay in business without charging you for a ticket, or could Exxon give away gas for free? No they cannot, and they aren’t. Plenty of money is made by giving things away.

Gifts aren’t free when it comes to credit cards. Retailers are offering free benefits because they are making as much if not more on kickbacks from the credit card companies as they are on selling their products or services. They are able to do so because so many people are carrying balances, which bring big dollars to the credit card companies, and drain the cardholders’ wallet.

If a consumer owes just $5,000 on a credit card, at 17.5% interest, it will cost $353 per month for two years to pay off the balance. That initial debt will not only eat up monthly income, but will end up costing $8,472 at the end of the debt period. That extra $3,472 can buy a lot of airline tickets, or any other benefit the card may offer. No matter how much is owed, it is best to pay off the debt each month, or work to pay off cards with a lot of debt over a shorter period of time.

If you owe a lot of money, paying off all debt at once might not be an option. Assuming debt needs to pay over time, the first step is discipline. Stop using credit cards to pay living expenses when at all possible. On the current debt, set a payment schedule that fits within your budget and pays off debt early. Paying off earlier than expected can save thousands of dollars.

There are other actions you can take to reduce the amount of time it will take to payoff debt. Try contacting your credit card companies to see if the interest rate can be reduced. Just a few points can make a huge difference. If the existing credit card companies will not budge, threaten to take your business elsewhere and speak with a manager. This may work as a last step to reduce your expenses while not going to the effort of moving business.

If the existing interest rate cannot be reduced, there are plenty of credit card companies that are willing to take your business. Balance transfers are not only common, but advertised by many. Check with other companies that might be willing to offer reduced interest rates if you move your business. If you owe on multiple cards, consolidating accounts can be a big help with the budget. Make sure to study the terms and conditions of each card to make sure rates do not balloon after a short period of time, unless you can pay off the balance before that time is up.

With discipline and strategic planning, credit card debt will be a thing of the past. Budgeting will become easier, credit scores will improve, and saving for the future will be more effective.

For some, it is best to cut up the credit cards at this point. Any temptation to return to debt should be avoided. However, credit cards can be beneficial for the consumer if used correctly. Instead of using your debit card for monthly expenses, put it on a benefit card. Earn frequent flyer miles to use on vacation, but pay off the debt each month instead of building debt. You can turn the tables and get something for free.