Rather than making getting out of debt, which is no fun, your goal, set a positive goal like gaining financial health and creating wealth or saving to buy a home. Set an achievable time for achieving a goal. Write your goal down and plaster it everywhere to keep it in front of you. Focus on the benefits you will derive by reaching your goal, not the sacrifices you are enduring.
Withdraw money you have in the bank and send it to the creditor at the top of your list.
It makes little sense to have money in the bank earning 3% when you are paying 18 – 21% in interest on credit card debt.
Note: Do not liquidate your IRA or company retirement accounts as the tax penalties are so high and you will be jeopardizing your retirement to such an extent that it is not worth it.
Negotiate the lowest rate credit card that you can.
Get as much credit as you can provided that:
- You are not increasing the mount you owe.
- The interest rate you are paying now is lower that the rate you have been paying.
- Switch cards every 6 months if necessary.
Read the fine print on the new card. Low introductory rates only apply for a limited period of time. After the “teaser rate” is no longer in effect, the rate may increase even higher than the rate you are currently paying. In other cases, the low rate may apply only to new purchases, not to existing balances you transfer from other cards.