3 Ways to Get Rid of Debt Once and for All

If you can’t pay off your monthly balances, take action.

The most important kind of debt to get rid of is the kind on your credit cards. To get started, “Make a list of each card, the current balance, the interest rate and the minimum payment,” suggests Marcia Brixey, author of The Money Therapist: A Woman’s Guide to Creating a Healthy Financial Life. Then, these strategies may help you pay without deep-sixing your credit score.

1. Do It Yourself

On your monthly statement, credit card companies are required to disclose how much you need to pay to be debt-free in three years. If you can make that payment on every card that carries a balance, pay off the debt on your own. “You may see a positive impact on your credit score because you’re paying down your debt,” says Gerri Detweiler, a credit advisor for Credit.com.

2. Try Negotiating

You can try to haggle a lower interest rate with your credit card company, which will help you pay down your debt faster, but the issuer may close your account. The strategy can work, though, if you’ve been a great client. Brixey suggests reminding the customer service rep about your account’s good standing over the last few years.

3. Get Expert Advice

If you’re deeply in debt, a free or low-cost nonprofit credit counseling agency may enroll you in a five-year debt management program. The agency closes all of your credit card accounts and you make a single monthly payment until you’re debt-free. Be aware, however, that closing your accounts will have a moderately negative effect on your credit score.

Don’t Despair

Even Brixey, a well-regarded financial expert, admits to being saddled with credit card debt years ago. “Being out of credit card debt is wonderful. It truly is independence,” she says.