about cutting costs is full of different diet analogies. Yeah. Just take away the tips below:
- Transfer your accumulated credit-card debt to a new card with a 0% or very low interest rate can give you a clean slate.
- The home-equity line of credit plan: You can pay off your debt more quickly with a much lower interest rate by using a home-equity line of credit — and get a tax deduction in the process.
- Reduce your 401(k) contribution and use the extra funds to repay your debt. You should keep contributing at least enough to receive the company match. Even so, you’ll be hurting yourself down the road.
- Ask a parent, sibling or other family member to make you a loan at a rate higher than they can get from current savings accounts, like 4% to 5%.
- Call your credit-card company and ask it to reduce your interest rate. Many banks will accommodate you, especially if you always pay your bill in time. You might try calling a couple of times over several months to see if you can get your rate down in steps toward the single digits.
- Making do with less. …systematically trimming expenses and increasing your payments will help you get rid of debt. Lower energy prices could help right now if you take your savings from what you would have had to spend on gasoline and heating oil and put it toward your credit card.
- Pay off credit card with smallest amount of debt first, not the one with the most debt.
- Cut $10 or $15 a month from each of several budget categories.
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