Oh No! I Racked Up $100,000 in Credit Card Debt!

by Dual Income No Kids on July 23, 2009 · 0 comments

Well, okay…not really.

But if you are in that unfortunate situation you’ve got to pay it off. Seriously.

Here are some things to consider:

1) Drastically reduce your expenses. You can probably live on $30,000 a year, so start cutting back. Any amount you make more than $30,000 put towards your cards. Live as frugal as possible. Learn what frugal living is and what it entails.

2) Do some things to get extra money. You’ll have to put in some serious effort to pay off the debt so you’ll probably be looking for some extra bucks. Saving money isn’t enough at this point, so either look for a second job or get creative with how you can bring in money.

3) If you’ve missed a bunch of payments, consider negotiating with your creditors. If your creditors think you are a deadbeat and aren’t going to pay, you have some negotiating leverage with them. Consider offering 50 cents on the dollar – they might go for it.

4) Avoid the debt consolidation people.
Most of them are a big rip off. You probably just need to start paying off your debt, but if you take the consolidation loans it will stay on your credit report for five to seven years.

5) On an optimistic note, things probably go quicker than you thought.
When a motivated person chooses to address their debt, it tends to go fast.

Best,

James

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