A Quick Way To Deal With Credit Card Debt

Find Funds to Pay off Credit Card Debt

Contrary to what many people hope, credit card debt doesn’t go away without effort.

And, winning the lottery isn’t a solution you can count on to pay off credit card debt.

So, what should you do when you fall behind and debt threatens your financial health?

First, let your lender know you’re having problems paying off credit card debt.

If you’ve been reliable in the past, they usually understand a temporary setback.

The first thing, of course, is to change your spending habits.

Discipline yourself to give up unnecessary expenses so you’ll have funds to pay off your credit card debt.

Then, go to work to get your head back above water.

• Sell off investments. If you catch it soon enough, you may be able to cash in some of your assets and pay off credit card debt before it gets the best of you.

• Rearrange your debt by paying it off with a home equity loan, which I personally don't recommend because that would be borrowing your own money. However, you’ll lower your overall monthly payments because the interest rate on a home equity loan will be lower than interest on credit card debt, and you’ll reduce your tax bill since the interest on a home equity loan is tax deductible. 

• Create extra income. I suggest you find ways, from part-time to full-time work or start an online business such as a niche blog, to earn additional money and use it exclusively to pay off your credit card debt.

File Bankruptcy to Eliminate Credit Card Debt as the Last Resort

Bankruptcy is not pleasant, and it takes years to get your credit rating back, but it will get you out of credit card debt.

Get Credit Counseling to Get Credit Card Debt Relief

Bankruptcy is normally sought only when your credit card debt exceeds your annual income and is multiplying faster than you expect your income to grow.

Credit counselors provide credit education, counseling, and help you get better terms with your lenders.

This is a proven resource that I have personally used.

In severe cases of credit card debt, they can set you up on a Debt Management Plan, which you pay them monthly and they distribute the funds to your creditors.

With a few exceptions, personal bankruptcy basically takes all you own, applies it to your credit card debt, and lets you off the hook for what’s left.

Consider bankruptcy to eliminate credit card debt if your creditors sue.

If you need outside help, I also recommend contacting the National Foundation for Credit Counseling at www.nfcc.org.

Tired of the debt lifestyle?

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