One of the greatest obstacles a growing number people encounter while trying to pay off credit debt is acquiring money to pay off debt. To pay off your credit card debt, you must pay more than the minimum payment amount, yet this is often hard to do if you are having trouble just making ends meet each month.
Where can you locate money to put towards your credit card bills each month? Here's a few thoughts:
Tax return: Do you usually get a big tax refund each year? If you do, then you can certainly use part or all of your tax refund to pay down your debts. What's more, you might want to adjust your tax withholding so a lesser amount of income taxes are withheld from each paycheck; you'll get a smaller income tax refund, but you will have additional …show more content…
Seeing as this is "extra" income that you did not have previously, you shouldn't miss the cash you put towards your credit card bills.
Borrow against your home equity: This is not a choice for taking lightly. Sure, you can cut down the interest you are paying on your debts substantially by taking out a home equity loan, but remember that your home is in jeopardy if you're unable to make the payments for any reason. Pick this method only in the event you are 100% confident that you'll be able to keep up with the payments, even during a job loss or other emergency.
Decrease spending: Though mentioned last, this is really the first step you ought to take to find additional money to repay debts. You ought to review your expenses to discover if there are any areas you could reduce to come up with additional money to be used towards your credit card debt. Some common bills that might be cut back on, at least for the short term, to help pay back debt include food (both groceries and eating out), entertainment (fitness center memberships, newspaper subscriptions, cable tv, internet, trips to the book store) and personal care (haircuts, clothing, housekeeping,
Where can you locate money to put towards your credit card bills each month? Here's a few thoughts:
Tax return: Do you usually get a big tax refund each year? If you do, then you can certainly use part or all of your tax refund to pay down your debts. What's more, you might want to adjust your tax withholding so a lesser amount of income taxes are withheld from each paycheck; you'll get a smaller income tax refund, but you will have additional …show more content…
Seeing as this is "extra" income that you did not have previously, you shouldn't miss the cash you put towards your credit card bills.
Borrow against your home equity: This is not a choice for taking lightly. Sure, you can cut down the interest you are paying on your debts substantially by taking out a home equity loan, but remember that your home is in jeopardy if you're unable to make the payments for any reason. Pick this method only in the event you are 100% confident that you'll be able to keep up with the payments, even during a job loss or other emergency.
Decrease spending: Though mentioned last, this is really the first step you ought to take to find additional money to repay debts. You ought to review your expenses to discover if there are any areas you could reduce to come up with additional money to be used towards your credit card debt. Some common bills that might be cut back on, at least for the short term, to help pay back debt include food (both groceries and eating out), entertainment (fitness center memberships, newspaper subscriptions, cable tv, internet, trips to the book store) and personal care (haircuts, clothing, housekeeping,