Paying off debt fast - how to pay off credit card debt quickly : Bad Credit Advisor

Paying off debt fast - how to pay off credit card debt quickly

Everyone wants to pay off debt fast. I would suggest to try paying of your credit card debt in sizable chunks, instead of doing it gradually. Generally, when it comes to debt elimination plans and strategies, virtually everyone advocates paying off debt slowly but steadily, over a period of time. That works for some if not many, but doesn't for others as quite a few debtors lack consistency to follow the slow road. After all, the vast majority of them don't get all that debt burden slowly and methodically, but acquire it within 6 to 12 months. You can pay off any type of debt in chunks or bursts as long as can afford it. But as you know, I don't like an idea to pay off mortgage early in this economic environment, as well as other installment loans like car or student loans as long as they have decent interest rates. But paying off credit card debt has become a high priority for many, especially with the recent credit limit cuts by many banks. Regardless, the chunk approach should work for every type of debt.

Obviously with this debt reduction strategy, you need to generate some additional income in sizable chunks - here are some ideas:

Income tax refund - if your get tax refund, use it to pay off some of your debt. Most of us are getting a thousand dollars or two, but many tax payers do not put exemptions they are entitled to, preferring to overpay heavily during the year, and end up receiving huge refunds in the range of $10,000, even $15,000. They call it their spring break bonus. Instead of spending it on vacation or buying more stuff, paying off credit card debt sounds like a good idea.

Bonuses and gifts, especially annual and semi annual bonuses and large cash gifts you may get for birthday and anniversaries are excellent sources to pay off debt fast.

Poker - if you are good enough to make it on World Poker Tour, one good evening will take you a long way to paying off debt fast. Seriously however, I know two guys, good enough to win $500 to $800 on a pretty consistent basis - 2 to 3 times a week. One uses cash to pay off mortgage early against my sound advise, but that is his business. The other is paying off his high interest credit card debt rather quickly - last I checked, he only has few thousand dollars remaining from original $29,000 debt burden.

EBay works nice for many. Get everything you and your family can live without - clothes, exercise equipment, old appliances, computers, books, CDs, etc. Whatever doesn't sell, donate or arrange garage sale. Can bring you another small chunk of change.

GunBroker is EBay for gun enthusiasts. Sell your firearms, ammunition, knives, survival gear, even land and domain names. If you have some collectible pieces you may be truly shocked how much you can get for them. Then again, these are tough to part with for many.

Gold, silver, platinum jewelry, coins and bars can fetch a very nice amount. The prices are quite high. Use it to pay off debt quickly.

Some suggest to sell cars and homes, buy smaller ones, and use the difference to pay off debt. If you have to go that far, you should be looking to declare Chapter 7 bankruptcy, which will likely allow you to keep a house at the very least, and wipe your debt clean.

Get a second job and use the entire paycheck to pay off debt quickly. You will be pleased to see your debt melting away on a weekly or bi weekly basis.

Mon Mar 23, 2009 03:03PM by Tony | More in Debt Relief | Comments (0)

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