Current economic times are challenging and most people need every dollar they earn. They look forward to pay day, a rewarding day when they see what has come from all those days of work. Then, they start paying bills and suddenly pay day becomes a day they would rather forget. In many cases, the money is going out faster than it is coming in. Wouldn’t it be nice if the money we earned could be used for something fun instead of the debt we already have? If that is ever going to happen, we must pay off our debt.

First, let’s take a look at our plastic friend, the credit card. We have all heard from some financial analyst on TV that we must pay more than the minimum on our credit card bill. This person is right. Paying the minimum, which is usually about two or three percent, only prolongs the pain. Plus, this is what the credit card company wants. The longer you take to repay the charges, the more interest they can tack on. Don’t let them win…find the money. Sacrifice it from somewhere else and pay as much as you can each month. Brown bag it, instead of eating lunch out. Don’t go bowling with the guys or out with the girls. We all enjoy some luxuries. Sacrifice them for a while. It won’t be fun, but it will beat watching the money go out as soon as it comes in.

Roll your debt, using the snowball principal. The basic idea here is to transfer your debt onto a lower-interest credit card. Another idea, which takes some thought and math skills, is to take advantage of promotional offers. Some credit card companies will try to entice you with an opportunity to move all of your debt onto their card for a much lower interest rate, usually for a limited time. Get out your abacus and figure out if the money you could save would be worth it. Make sure you consider the interest rate after the promotion period. Will it be higher than the rate you are paying now? Read the fine print and understand what you are getting into. If the math adds up and you can live with the stipulations, consider doing it.

Consider using your savings. Again, it’s a question of mathematics. Figure how much money you are losing to interest on your debt. Are you making that much or more in interest on your savings…probably not? Would it be worth it to use your savings to pay off your debt? Do the math.

Can friends and family help? Be careful! This one is a slippery slope. These people love you and, if they can, will probably help, but re-payment and interest needs to be decided upfront and put in writing. It’s not like borrowing from a bank. Friends and family will probably be more tolerant, but losing their trust is not worth the money. It’s a viable option; just make sure it won’t jeopardize your relationship.

Everything is negotiable. Contact your creditor and tell them of your inability to pay. Tell them you just don’t have it and bankruptcy may be your only option. Odds are they will try to work something out before they take the chance of no payment at all. The worst they can do is say no.

Debt is not a pleasant thing, but for most people, it’s a way of life. There are many ways to pay off debt; they just take some work and sometimes creativity. If paying off debt will make your life easier and help you sleep better, isn’t it worth giving a shot?

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