Five Tips To Deal With Credit Card Debt

We all know that the best way to address debt is to just stop incurring it

. Sometimes, that means the best way to deal with your debt load is to get rid of the source of the problem, often credit cards. So what's the number one tip to address credit card debt?

1. Cut up your credit cards, put 'em on ice, melt 'em down-choose your poison. Just get rid of them. Then, shut them down. Just destroying your card doesn't always close the account. To avoid running into the same problem again, you have to actively close your credit card account in a signed, written request (no emails) to the credit card holder. Generally, credit card companies only allow you to close your credit card when you've reached a zero balance. So, to help you do that, there's tip number two.

2. Transfer credit card debts to your lowest-interest card. Let's say you owe $2500 on a high-interest card. You have a lower-interest card with room to carry that debt-or even some of it. Transfer as much as you can to the lower-interest card, then fully pay off and shut down the higher-interest card. Keep transferring and paying down until you have only one or two cards left-and keep those under lock and key for emergency use only. So how will you buy anything?

3. Start paying with cash. It seemed like such a great idea when plastic replaced cash in the early nineties, but it led to too-easy spending, and an explosion of credit debt. If you have debt repayment problems, start buying with true green, and go directly to your bank to get it. Do not use automated bank machines, which can charge a small fortune for withdrawals.

4. Get yourself on a budget. Figure out what your debts are, and how much money you make. Then, pay something towards those debts every month-even if it's just the minimum. Don't miss a payment. If your debts are really overwhelming, there's another tip that may be just the answer for you.

5. Consider using other assets to help pay off your debt. If you're in a really tight spot, and missing payments, or have stopped paying altogether, you need a fast cash infusion to bail you out now. A car title loan may be the perfect answer for you, especially if you have a poor credit history. If you own your car, and it's less than eight years old, you may be able to borrow as much as 40% of the wholesale value of your car. Take that cash, and pay off those credit cards, and make one easy monthly payment to your car title loan. You can apply online. It's fast and easy, and by tomorrow, you may have relieved a lot of financial strain on you and your family.

by: Molly Wider

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