DISQUS

DanielleLaPorte · 11 months ago

#3 is on-the-money, so to speak. I've done this numerous times. It's as simple as, "I'd like a better interest rate...or I can transfer my balance to a more competitive card." It's always worked.

Sherry · 11 months ago

I agree with most of the advice here. However - regarding the advice to avoid closing accounts - I don't agree that this is right for everyone to avoid. If someone does not have a need in the next 6 to 12 months to obtain new credit (ie., they are not going to refinance or purchase a home or car, for example) I don't think the hit to the credit score is a serious problem.

I followed this advice last year and early this year as we were paying off cards so I could increase our credit score as well as decrease debt because we were buying our house. However, we have the house now, and I hate dealing with more than a few cards - as well as paying annual fees to have the cards in the first place, so I will be closing at least 3 cards in the next few months as we pay them off. The hit to my credit score doesn't bother me, because I know when we are ready to need credit again (we may buy a new used car again in 2 or 3 years) I will have time to recover.

This is what is working for us - as you stated, there is no one size fits all solution. Great article - I just wanted to share our experience.

Daniel Gibbons · 11 months ago

Very good point about the annual fees. Some cards have fees now in the $80+ range, which quickly adds up if you're talking about five or six cards.

William · 11 months ago

"They obtain a home equity loan, use the money to pay off debt, and then they acquire new credit card debt"

Not only that, they put their house at risk if they ever lost their job or suddenly couldn't keep up with the debt payments for some reason. Converting unsecured debt into secured debt can have unexpected consequences.

Loan Modification Dude · 9 months ago

Applying for a Home Equity Loan - i guess this is the problem I'm encountering right now.

Survive Recession · 8 months ago

This a fantastic group of things not to do to pay off debt. However, i have a different opinion about number 4. Sometimes using a home equity loan may make sense to pay off the debt. Now you rightly point out that it is very tempting for some people to run right out and get more credit cards. but, that is more of an issue with control than it is of the home equity loan. If you have credit cards at 25% interest and you can get a home equity loan at 8% you are really doing yourself a favor to get the hiome equity and pay off the credit card debt. The rest is up to you and being responsible with your finances.

marianaws · 7 months ago

1: Closing Credit Card Accounts
i still can do that cause still need it when in emergency ... maybe by controlling it we can still use it for the last option and keep it in a good rating

Ways to pay off debt · 6 months ago

Thanks for this quick tips,about debt,btw you should check your site in Opera.

Credit Repair · 6 months ago

I learned a lot from your post. Very well laid out, thank you!

Adriana Lima · 5 months ago

It’ll take approximately eight years to pay off a no-interest credit card with a $1,000 balance. Add 15 to 20 percent interest on top of that and you’re looking at 20 to 30 years. Paying just the minimum is enough to keep your credit score afloat, but it isn’t enough to reduce the balance.

manmanop · 5 months ago

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Loan Modification leads · 5 months ago

Thanks for posting this. I agree with it and it's really a big abet for those who have lots of debts.

Loan Modification help · 5 months ago

Applying a home equity loan can be helpful, but nowadays it is difficult to find houses debt free.