Talk to a debt counselor toll free:800-300-9550
Our Clients Rate Us Excellent
Based on 3234 reviewsTrustPilot Reviews
If you put your mind to it you should be able to think of anywhere from three to a half dozen ways to make extra money, which could be used to pay down your debts. We've read stories of people who took on second jobs and used the money from them to pay off as much as $100,000 in debts.
7. Snowball your credit card debt
There is a strategy for paying off credit card debts that has worked for many people. It's called snowballing them. The way this works is that you make a list of your credit card debts from the card with the highest balance down to the one with the lowest balance. You then do everything possible to pay off the card with the lowest balance. Once you've done this, you will have new money you can use to start paying off the card with the second lowest balance and so on. Conversely, you could order those cards by interest rate from the highest to the lowest and then do what you can to first pay off the card with the highest interest rate then the card with the second-highest rate, etc. This is called snowballing credit card debt because as you pay off each card, you will build up more momentum to pay off the rest – like a snowball rolling downhill.
To see exactly how snowballing credit card debt works, just watch this video.
Once you get your credit card debt paid off
It will probably take some time and a lot of self-discipline to pay off those credit card debts. But the feeling you'll get the day you become debt free should be well worth the effort. Just make sure you don't fall back into any of those bad habits that got you into debt in the first place. In fact, you might do as one woman did and shred all of your credit cards except one and then freeze it in a block of ice – to be used only in the case of an emergency.