Credit Cards

Creative ways to pay off credit card debt

July 17, 2015 by Ninja in Credit Cards

Lot of people can’t resist taking various bank offers. In the beginning these look exactly like those on TV commercials. Just go to the counter, sign some papers and voila, the money is yours. You can buy clothes, cars, kitchen appliances, houses, everything you ever dreamed off. But later credit card debts and loans usually turn into a nightmare.

The public often criticize big spenders, but even if you play by the unspoken rules of the masses, after finishing college, getting married, finding a job and getting a mortgage, you will wake up one day with crushing debt.

One of the worst kinds of debt is a the one from your credit card account. In the United States typical credit cards have interest rates from 7 to 36% which is very high comparing to all other kinds of loans. That’s why this debt can haunt you to your grave and beyond and it needs to be dealt with, as soon as possible. In this article you’re going too find some creative ways to pay off credit card or any other kind of debt


Balance Transfer

This is not the way to pay off debt, but to lower future interest rates. It’s basically moving your credit card account to another bank that has a better offer. Since the competition is huge in the finance sector, banks would often try to take over each other’s clients with offering them better conditions or lower interest rates. To do this you’ll need to check offering of many different banks and find the one that’s offering the lowest interest rates. This will enable you to save more money in the future and pay off your debt faster

Stack Method

This method is widely used by people who have more than one debt. First you’ll need to create a strategic spending plan. This means creating a list of all your expenses and ranking them in order of importance. You’ll also need to decide how much money are you going to spend for each area of your life, with cutting out all unnecessary spending. Then you need to create a separate stack, where you’re going to put all the money that’s left, which should be used for debt repayment


On the first of the month you should pay minimum payments on every single debt you have. When paying the debt with the highest interest rate, you should also add a stack money you saved during the previous month to the minimum payment. This way you will pay of this debt faster then others, so when you pay it of in full, you can redirect the stack money for paying the debt with the second highest interest rate, and so on. When it comes to paying off credit cards, this method is very useful, because these debts are usually first on the pay-off list, because of their high interest rates

Ask Your Loved Ones to Help You

Good thing about family, friends and partners is that (in most cases) they don’t ask for interests when loaning you money. It might seem inappropriate to ask for a loan from the people you love, when your financial situation is catastrophic, but if they’re ready to offer you some longer deadlines it can help you to cut all the high interest rates from your credit card’s account.

Forbes contributor Stephanie had a great offer from her boyfriend Rob. They made a pact by which she would repay her student loan in three or four years, and he will use that time to save money, so they can start building their life together. Rob’s proposal was excellent, because most debtors are scared what they’re going to do when they pay off their debt, since in the end of any debt payoff people stay penniless and then it’s hard to stand back on your feet, especially after spending several years thinking only about banks, credit cards and interest rates, instead of  more important things in life

Budget Cuts

Sometimes budget cuts are the only way to pay off bigger debts. Having a bad debt, requires changing your life significantly and here are some of the creative ideas to save money for some additional payments

  • Move to a less expensive neighborhood– gentrification is at its full swing, which makes less expensive neighborhoods more secure and equipped. You should use it and cut your rent in half, plus this way you can make your everyday life much more interesting.
  • Cancel cable subscription– with the increased data flow speeds, you can watch all your favorite shows by streaming.
  • Cancel gym membership– lots of people exercise in nature and they feel great about it. There are also a lot of free outside gyms in every neighborhood now, and expensive health club memberships are the thing of the past.
  • Travel to less expensive destination– United States is one of the most expensive countries in the world, use that fact and travel to developing countries where dollar rates are awesome, and where you can spend long and fun vacations for small prices. Also try to arrange everything by yourself, and to skip agency fees.