MORE Credit Card Debt Pay-off Suggestions

If you missed our first article about credit card pay-off suggestions, you can see it here.

Once you’ve decided to pay off your credit card debt, it can be hard to know where to start.  Here are some additional pay-off suggestions to help you.

Suggestion 1 – Pay more than the minimum balance owed.  Do you know why minimum balances are set at what they are?  They are crafted to make your credit card the hardest thing to pay off…ever!  If you pay the minimum amount, you’ll be paying on that card for years and years to come.  The best thing you can do is pay a lot more than they ask for.  Set up your own payment amount.  For example, if you know that you want to have that amount paid off in six months, calculate your monthly payment based on that time frame.  Then, send that amount in for your payment every month.  If you are concentrating on one or two cards, then you may have to temporarily pay the minimum payment on a few cards.  But, remember, that is only temporary!

Suggestion 2 – If you’ve decided to make a serious change about your spending habits, and if you have the funds available, you can borrow against your life insurance or your 401(k).  This is not something that you want to do unless you have made the serious decision to change your spending habits.  This is money that you will need to pay back, and it will be at a few points above the prime interest rate.  However, you can look at is as paying yourself back.  All plans are different, and you should look at your individual plan to determine your options.  You can also get a home equity loan, but again this should be an option only for those that are serious about making a change.  Destroying the credit cards should definitely go along with these options.

Suggestion 3 – Go to your friends or family and ask for help.  Let’s face it…None of us really want to do this, but it could be an easy way to help you get back on your feet.  You don’t have to fight the battle alone.  Seek out help from those you know you can trust.  It’s best to keep things formal and have a written agreement.  This will make the situation seem more real to you, and you’ll feel obligated to pay back Aunt Betty.  It will also make Aunt Betty feel a lot better about loaning you the funds.

Suggestion 4 – Get outside help from credit counseling services or by filing bankruptcy.  This is another thing that no one wants to do.  However, if you are in serious trouble, it may be the only viable option.  Make sure when you are looking for a credit counseling service you do your homework and choose a reputable company.  Same thing goes with bankruptcy.  Make sure you find someone reputable to help you through the process.

You can be successful in your war with credit card debt.  Make the decision to change your spending habits, change your outlook, and move things forward!

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