Thanks to the School of Hard Knocks, our family has had a lot of experience on the Road to Debt and on the (hard, gravely) Road to Getting Out of Debt. We are now, thankfully, a cash-only family, but we know that at any time our one income could become no income. (Why, that would be downright familiar -- we were just there in the fall!) Even though credit cards are not something any of us love, they are sometimes, in our society, a necessary evil.
If you are realizing how badly you need to get out of credit card debt, but are under the burden of a high interest rate, this is a frustrating time, isn't it? Credit card companies are lowering available balances and making it harder for us to find a 0% credit card deal. This tightening of their corporate belts is due to the current economic crisis, but also thanks to the new credit card reform bill, straight from the White House (the Credit Card Accountability, Responsibility, and Disclosure Act of 2009).
The reform bill was designed to help us as consumers, but it also added a financial burden to credit card companies. As a result, they are becoming more strict with balance allowances and with lower interest rates.
Don't lose hope! We just need to do a little more homework than we had to do in past years. Here are a couple of ways to get out of debt faster:
- Don't use a credit card anymore. I know, I know, that's easier said than done, and it may not be possible right now. But I'm telling you from experience that when you wait and pray for something (and, sigh, wait and pray some more) , it will often fall right into your lap for free or for super duper cheap. You will be amazed! Sometimes - often - you find that you really didn't need that thing after all.
- Find the best balance transfer credit cards. A "balance transfer credit card" is, yes, simply another credit card, but one that offers a perk for transfering your existing credit card balance to their company. Often, that perk is a 0% interest rate for several months or so. When you transfer balances to a 0% interest rate, you'll be able to breathe a little easier as you save money on interest rates, and, happily, the time it takes to get out of debt is reduced.
(If you want to know more about balance transfers, go to
Smart Balance Tranfers, and read the helpful articles - listed at the bottom of the home page - including "
Tranfer Balances ASAP," and "
Balance Transfers 101.")
There is so much more to be said about saving money while in debt! Lately, I've had a lot of ideas swooshing around in my head about finances, but I haven't wanted to blog about it because this isn't a finance blog or a saving money blog. But the nagging thought is, how can I live a "just, pure, lovely" life if my mind is overwhelmed with the debt load I carry? I'm not sure where it all will go, but I'm jotting down notes as quickly as I think of tips and tricks regarding finances. Maybe it will be a future blog series or an ebook (ack!). Meanwhile, I'd love to learn from you, too...
Do you have any tips on getting out of debt or making debt easier to bear?