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« Another Advantage of Education: It Saves You Money on Your Car Insurance | Main | Star Money Articles for the Week of May 8 »

May 11, 2006

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I'd like to add one more thing to that list...try to get into a support group (online or offline) to help keep you on track ;)

Thanks for the tips!

I definitely agree with you, credit card debts with their high interests are one of the worst debts you can have.

Some ways to pay it off:
1. Snowball your debt payment. Look at all your credit cards. Pay particular attention to the one with the lowest interest rate. Have you reached the maximum limit on that card? If not, consider transferring a higher interest bill to that one. If your entire balance is too large to fit on one low-interest rate card, pay at least the minimum amounts due on all of your cards except one. Funnel the majority of your debt repayments into that one credit card, and pay it off as quickly as possible. When the balance on that card reaches zero, move on to the next with the same aggressive repayment plan. Another way to transfer higher interest debt to a lower-interest card is to take advantage of the promotional offers many banks use to entice you to their line of credit. You've seen the come-ons. "Transfer all your credit card balances to us, and pay just 5% until ..." It could be worth it. Moving to 5% from 18% interest could mean substantial dollars to you.
2. Borrow against your life insurance. You're borrowing your own money. But the interest rate is typically well below commercial rates, and you can take your time repaying the loan.

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