canstockphoto9786423Are you looking for the cheapest ways to pay off your credit card debt? If you have been struggling with credit card debt, it makes sense for you to pay it off really quick. The faster it is paid off, the better your credit score will be. The faster it is paid off, the faster you will be able to focus more on saving money. The faster it is paid off the sooner you will enjoy one less stressor in your life. However, paying it down fast may not be your primary goal right now. You may be looking to pay it down as cheap as possible instead.

 

It won’t be the same for everyone. It all depends on your balance as well as your interest rate. Finally, the cheapest way to pay off your credit card debt will also depend on your assets. Let’s take a look at a few possibilities to pay off your debt.

 

Use Your Savings

If you have a savings account, take a look at the amount of interest you are earning on your money. Compare it to the amount of interest you are paying on your debt. If you’re paying more on it than you’re earning, then you should consider cashing out your savings to pay off your debt. Once you wipe away your debt, then you can once again begin focusing on your savings. If you’re no    longer making any monthly credit card payments, you may be able to start rebuilding your savings quite quickly.

 

Debt Consolidation

Do you qualify for a debt consolidation loan? If so what is the interest rate? Compare the interest rate of a loan compared to the interest rate that you are paying on your credit card debt. Most often you are paying credit card companies much more than you would be paying a bank. For this reason, make sure once you’re through paying off your credit card debt that you cut up those cards. Once you run a balance on them, then you are paying back the loan and paying on your credit.

 

Home Equity

Home Equity Loans may be an option depending on the market, how much equity you have on your home and the interest rates. In addition, a portion of the interest that you’re paying on a home equity loan is tax deductible. However, like a debt consolidation loan, you will jeopardize yourself by running up  your credit cards again and paying two loans simultaneously. This should be used as a last resort.

 

Pay It Off

Finally, you should consider cutting back on your expenses and paying more than the minimum balance on your credit card each month. This is often the cheapest and the most cost effective way to pay off your credit card balance. There are other ways to pay it off such as getting a second job, selling your car or moving into a cheaper apartment if needed. The faster you pay off your credit card debt, the cheaper it’s  going to be.

 

If borrowing isn’t an option for you, and we didn’t mention borrowing from your friends and family and you don’t have any savings to pay off your debt, consider taking drastic measures. Get a part-time job, pick up some freelance work or sell some of your valuables by having a garage sale or use an auction site like eBay.

Using your savings, cutting back on expenses and debt consolidations are some of the cheapest ways to pay off your credit card debt.  You’ll be relieved once your credit card debt has been eliminated for good.

For more tips on  building your savings, sign up for the 10 Part Mini Course.

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