How to Pay Off Credit Card Debt: Part II

There are several steps that you can follow when deciding how to pay off credit card debt.

Change Your Attitude on Spending Money

For you to pay off your credit card debt as fast as possible, you must change your attitude on how you spend your money.  If you are the kind of person that loves to shop and buy things whether you have the money or not, you have to change this mentality if you are to successfully learn how to pay off credit card debt.

How to Pay Off Credit Card Debt

Stop separating your income in your mind

If you are in massive credit card debt, it will do you some good if you stopped setting aside money every month for habits that are of no benefit at all such as gambling.  I have seen people who earn around $80,000 a year with a credit card debt of around $20,000.  This is a massive debt that requires these people to pay $500 and over every month just to pay for the interests on the debt and not reduce the actual debt amount.  However, the same people set aside a big sum of around $100 every month to be used in the casino.  There excuse is that there are things that they cannot give up in their life no matter how much debt they owe the credit card companies.  They are willing to get deeper into credit card debt instead of learning how to pay off credit card debt.  The extra $1,200 per year spend in the casino would go a long in reducing the debt and help these people pay it off quicker.

Any extra money should help clear the debt

When you get any extra money, instead of thinking of several ways to spend it, use it to increase the amount of money you pay on your credit debt so that you are paying more than the minimum.  This will help you get a big portion of the credit card debt paid off if this is done over a period of time.  Decide to pay off credit card debt by using every extra penny you get to reduce the debt balance and avoid massive interest rates.

Get a Part Time Job

When deciding how to pay off credit card debt, you need to get your hands on more money as you can so that you can use it to pay off your credit card debt.  One way to get extra money is to find a part time job that could help you make an extra $100 a week.  You can also increase the number of hours you work in your current job if it is possible for you to do so.  Earning more money and cutting costs will help you to eventually pay off your credit card debt.  Many of us pay a lot every month in cell phone charges, cable and internet.  If you don’t really need these items, consider getting rid of the expenses and concentrate on using the money that is freed up to pay off your credit card debt.

Using a Home Equity Line of Credit to Pay off Credit Card Debt

Many people who are learning how to pay off credit card debt are told by financial experts to use home equity line of credit to reduce the amount of credit card debt that they owe the credit card companies.  This may not be a good thing to do because if you get to a point where you decide to declare bankruptcy, all balances on your credit card are unsecured.  However, a home equity line of credit will be secured by your house.  Using home equity line of credit to pay down your credit card debt means that the debt you have taken is only backed by your credit.  The worst thing that the credit card company can do to you is take you to court and get a judgment against you.

However, if the debt is backed by your home the worst scenario is that the bank can kick you out of your house by executing a foreclosure on your house.  When deciding how to pay off credit card debt it is up to you to decide.  Do what you are comfortable doing.  If you have a manageable credit card debt and you are only looking to save the amount of money that you pay in interest expense, then using a home equity line of credit might be something to consider.  If you discover, as you learn how to pay off credit card debt, that there is even a slight possibility that you may at one point be forced to declare bankruptcy, don’t use home equity line of credit to reduce the amount of credit card debt, as it can lead to you losing your house.