Must like any addiction, admitting there is a problem is the first step. It is what happens after that makes all of the difference. Sure there are not twelve steps when it comes to coming out of debt but it sure can feel like it at times. Although you may feel you are sinking into debt, try looking into four ways to start paying off credit card debt now.
Stop Living beyond Your Means
Ever wonder how long does bankruptcy stay on credit report agencies radar? Let me tell you, far too long! Creating a budget is a great way to start tracking spending but if you do not eliminate unnecessary spending and living beyond your means you will never have anything leftover at the end of the month, let alone be able to contribute to any kind of savings account. Just making simple decisions that do not have to be life changing, such as reducing the amount of eating out, going the bar, of needless shopping is a great way to start. I’m not saying to not have any fun, but pay more attention to the money coming in and how quickly it is leaving.
Take Advantage of a Balance Transfer
If you have a high balance and APR it could be possible that most of your payment is going to pure interest, especially if you are paying close to the minimum payment, which will never get yourself out of debt. If you have other cards open without balances, take a look to see their current transfer offer, which can be as low at 0% APR if you pay off in a year, or low 3% APR if a longer period.
Look into a Personal or Home Equity Loan
Depending what kind of interest rate you currently are paying on versus the remaining balance you may be better to have an end in sight with a great interest rate from a personal loan or even lower with a home equity loan that you can borrow against the equity you have built into your home, and the interest may be tax deductible.
Might be Time to Sell
If you are really strapped for cash then maybe you could look into donating items for a tax write-off, putting any refund towards outstanding debt. Another option is going through and selling items that you no longer use around the house, which could net you a decent about of money to apply toward any principle outstanding balance.