You can throw the reminders in the garbage. But thats not going to get rid of the debts and its not going to make them go away either. Debt hovers like a frog waiting for a big fat fly to land! With interest rates for credit cards reaching 18% and more and being compounded each month mortgage refinancing might be the way out.
>>>>>>Always pay down extra than the minimum requires! Youve got to break the habit of only paying the minimum payment. The minimum which is sometimes only: 2% or 3%. This represents mostly interest and hardly any going towards the principal. The Banks and credit card companies are very happy when you only pay the minimum required. The longer it takes the more money in interest they get.
>>>>>>Youve got to bite the bullet! Pay down as much as you can each month a good rule is to pay at least double the minimum required. Start making some sacrifices this way youll be able to come up with the extra each month and stop using the card! This will get you out of debt a whole lot faster without dreading the statement each month.
>>>>>>Accelerate your debt payments! Sit down and really look at your credit cards [only got one GREAT] Look particular for which ones are giving you the lowest interest rates. Is your credit limit maxed out on this card? If its not transfer any amount of credit you have from a higher interest paying card to this one. Most credit card companies will allow you to do this.
If the balance is too much to transfer over to the low interest card pay the minimum on this low interest card and pay at least double or more on the high interest card. This is known as the snowball effect as your credit card debt decreases on one card you have more money to pay down of the others Now you can see the end of the tunnel!
>>>>>>Always take advantage of new offers like! Transfer your debt to our card and get a real low interest for 6 months, this is a perfect opportunity to lower the interest you paying and freeing up a few more dollars to pay down those high interest cards. Before you do these be certain you read the fine print.
Some financial institutions are saying if you transfer your balance from the new card to another within a 12 month period youll have to pay the normal interest rate on all the outstanding balance. So that so-called low introductory rate of 3.9% now becomes 18.99%. Just another way they nail you! So Read the fine print carefully!
>>>>>>Cash in your savings/investments accounts Yes or No? No If you were to cash out your savings & investments that would be one answer to how to pay off credit card debt. But would you be further ahead by doing this? Sometimes it would just silly to do such a thing If the interest rate on your credit cards or other debt is at 12% you would need to be receiving at least 18% on your savings and investments to offset the extra cost of taxes to be paid on the money!
Yes Assuming the interest is at 12% your savings and investments will have to be making at least 18% to equal the taxes. However in todays current economic condition its highly unlikely to be getting 18% interest. You certainly would be better off to pay down your debts By doing this you’re in affect receiving 18% or the current credit card interest on your savings and investments. Thats a hard call to make!
>>>>>>Take out a loan again your life insurance policy! Do you have life insurance with a cash value? You could get a loan and use the policy to secure the loan. In actual sense your borrowing money from yourself the great thing is the interest rate would be quite low and you could have a longer time to pay it back.
>>>>>>Talk to your creditors. So youre at the end of the road No Savings relatives and friends have done all they can and you havent got anything left to borrow against. Its feels like you’re in a well at the very bottom with no place to go! Youve reached the end! Youve got nothing else to try but bankruptcy. No way you need to pull a rabbit out of a hat
Talk to your creditors tell them what you’re up against if they wont negotiate youll have no option but to go bankrupt. Ask them to help you with a lower payment and repayment schedule. When there faced with the idea that you have no choice but to take such drastic action, if you cant do this yourself there are groups out there that will do it for you.
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