There is no “quick fix’ to lower debt legally. Becoming debt free is difficult. There are no shortcuts or
hacks. Getting rid of excess debt is very much like getting rid of excess weight. It was fun putting it on,
but it takes sacrifice to remove it. Any solution requires dedication, daily attentiveness, vigilance, and
focus on the goal.
The following options are not offered as debt management. They are ways to work your way out of the
current debt. The challenge is to not add any additional debt while you are doing it. If your debt load is
from a “fluke” in time for you, sorry for your struggles, and congratulations on moving forward. If the
unmanageable debt is another in a string or cycle of overspending, solving, and spending again, these
methods probably are not for you. In fact, they can make your situation even worse.
Balance Transfers seem like a quick fix with 0% initial interest rate.
Good: If you can pay the balance within the promotional period, do it.
Bad: You may have deferred or merely delayed interest, and the new rate may be higher than the last
loan, making this a misleading solution.
Debt Consolidation may appear to make it easier to pay.
Good: If the interest rate is lower than that of the loans being combined, AND you will make the
payments, this option may help you.
Bad: Transfer fees, more payments for a longer time, potentially increasing interest rates, and impacts
to your credit score make this a deceptive solution.
Home Equity Loan makes it feel like the debt is gone with only a minor change to your mortgage
payment.
Good: Add to your mortgage payment the amount you have been paying on all the credit card debt, not
just the new amount.
Bad: You will now be paying interest on the old credit card debt for decades. $20,000 at 4% increases
your mortgage $120 per month. After twenty years of this, you will have had paid nearly $30,000 for
those old purchases. Will you even still have any of those items? Does that new pair of pants or jacket
still fit? Would you have purchased it knowing it would take 20 years to pay for it? Did you buy dinner,
coffee, or a movie on the credit card? Is worth 20 years of payments?
If you have already changed or are ready to change your spending patterns, one of these methods may
be the impetus you need to clear the consequences of your old ways. However, none of these methods
addresses the problem of overspending, and are not a viable solution.