» Business Credit Cards » Gasoline Credit Cards » Low Rate Credit Cards » Bad Credit Credit Cards » Retail & Store Credit Cards » Reward Credit Cards » Student Credit Cards » Prepaid Visa Card to Build Your Credit

Card Category: All Business Charge Foreign Poor Credit Pre-Paid Regular Reward - Airline Reward - Auto Reward - Cash Reward - Finance Reward - Gas Reward - Hotel Reward - Retail Reward - Sports Reward - Travel Reward - Other All Reward Cards Secured Student Intro APR: All 0.0% 1.9% or Less 2.9% or Less 3.9% or Less 4.9% or Less 5.9% or Less 6.9% or Less 7.9% or Less 8.9% or Less 9.9% or Less Time Period: All 3 Months or More 4 Months or More 5 Months or More 6 Months or More 7 Months or More 8 Months or More 9 Months or More APR (Purch.): All Less Than 6% Less Than 7% Less Than 8% Less Than 9% Less Than 10% Less Than 11% Less Than 12% Less Than 13% Less Than 14% Less Than 15% Less Than 16% Less Than 17% Less Than 18% Less Than 19% Less Than 20% Less Than 21% Less Than 22% Less Than 23% Less Than 24% Less Than 25% Annual Fee: All $0 $10 or Less $20 or Less $30 or Less $40 or Less $50 or Less $60 or Less $70 or Less $80 or Less $90 or Less $100 or Less $110 or Less $120 or Less $130 or Less $140 or Less $150 or Less

Wednesday, August 20

Commodities Entrepreneur Fed Watch Finance Fund Management Insurance Industry Job Markets Law Mergers Mortgages Mutual Funds Online Banking Personal Finance Real Estate Retail Investor Small Business Stockwatch Tech Stocks

Quick Clicks

» Business Credit Cards » Gasoline Credit Cards » Low Rate Credit Cards » Bad Credit Credit Cards » Retail & Store Credit Cards » Reward Credit Cards » Student Credit Cards

Credit Card Diva Blog Calculators Checklists & Worksheets Dept. of Revenue Online Banks Online Brokers

• credit card offers
• Free Credit Card Information
• Cash Advance

Manage Debt

 .
Ten Ways You Can Pay Off Your Debt

Sooner or later you must come to terms with your outstanding debt problems. The consequences of not repaying your debts are dismal - it's possible you could lose assets such as your home or car. Your ability to borrow again might be limited due to a bad credit rating. Your earnings could be garnished or you could even wind up in court. Not a happy situation.

The good news is that there are a number of debt reduction strategies that can help you reduce financial distress, manage your money better, and improve relationships with creditors. Here are ten of them:

1) Contact Your Creditors At Once:

This is one of the most overlooked ways to resolve your debt problems. Don't wait for your accounts to be turned over to a debt collector. Communicate with your creditors and assure them you will continue making payments. They are most likely willing to work with you. Be honest and explain your financial situation. Tell them you plan to pay off your debts as soon as possible. Ask for a reduced payment schedule or a lower interest rate. Some creditors might even be willing to accept interest-only payments for a few months. It never hurts to ask.

2) Empty Your Savings Account:

Do What? If this advice comes as a surprise to you, please try and understand that it makes absolutely no sense to have money in the bank earning only 4% while you're carrying credit card debts that charge in excess of 18%. Paying off high-interest cards like these is like finding an investment that yields an 18% return, all tax-free and without risk. Even if you're a stock market guru, your investment returns would actually have to beat 18% because of the tax consequences. If the interest rate on your debts are even higher, the decision to repay versus invest becomes more obvious.

Your asking me to deplete my emergency fund? There are two schools of thought to this question. You may want to leave a small cushion in your account to absorb any unforeseen expenses or temporary loss of income. On the other hand, if you truly need them, you may decide to use your credit cards for an emergency situation. Otherwise use some of the other strategies that follow (borrow from your family, etc).

3) Increase Your Minimum Payments:

Consider this. If you only made the minimum payment on a $2,000 credit bill with an 18% interest rate, it would take you roughly 18 years to pay it off. The interest alone would amount to $3,690. Have you ever wondered why the minimum payment on your credit bill is so affordable? Take a hard look at that last number and you'll see why lenders set your minimum payment so low (often 2-3% of the outstanding balance). Doubling or even tripling your minimum payments will have a significant impact on your ability to reduce debt. Those increased dollars will save you thousands in interest payments and shave months, if not years, off your debt. Don't play by their rules.

4) Pay Off The Highest Rates First:

Paying off the highest interest rate rather than the highest balance will result in quicker debt reduction. Your debts may take many years to pay off, so don't allow the additional interest charges that are still accruing to be at the highest rate. Pay the minimum to each creditor and apply all your remaining money to the debt that has the highest rate. Once the debt is paid off, move to the next highest rate and apply the rollover amount from your first debt. Continue down the list to the next-highest creditor and repeat this process until your debts are gone. Stick with your plan.
more -->

Credit Matters

Money Matters

Paycheck Calculator Budget Worksheets 101Money Saving Tips Financial Center Loan Center Budget Planner

Credit & Debt

Credit Card FAQ Credit Basics Create a Budget Identity Theft Manage Debt Protect Credit Repair Credit