How to Pay Off $10,000 in Credit Card Debt

$10,000 seems to be a magic number when it comes to credit card debt. When people have credit card balances with 4 digits or less, people feel confident that they can pay off their debt over time. But once that fifth digit appears, it hits them: they've got a serious credit card debt problem.

If your credit card balances exceed $10,000 (or even $5,000 or $1,000), there are many ways you can start reducing your debt and eventually become debt-free. When your credit card debt is in the five-digit range, you often become eligible for special consolidation programs. This article has tips that will help you pay off your charge card debts.

Try to apply for loan consolidation, either from the federal government, or from private lenders. You may qualify if you have at least $10,000 in combined debt from credit cards, car loans, or private student loans. Keep in mind that consolidation does not eliminate your debt, but it combines all your separate loans payments into one monthly payment. Some debtors may qualify for a new, lower interest rate.

Consider selling excess personal property. If much of your credit card debt is from buying physical objects, your can recoup your losses. Though you won't get back the full amount that you spent, you will get back a good portion of the money if you sell wisely. Use eBay or other sites to liquidate unneeded possessions.

Sell your car if you can. You will get not only money for the car itself, but you will save a lot on gas and insurance. That money can go toward paying down your credit card debt.

Pay off the smallest credit card balances first. If you are not eligible for consolidation, you will have to pay off each credit card one by one. Pay the lowest balances off first, and then cancel the cards.

Get a side job to supplement your income if you can. You can take on a night shift job as a janitor or maid. If you have more day time flexibility, you can try freelance writing, tutoring, or telemarketing. These are entry level jobs that don't require any extra training, so you won't incur more debt for job training.

Most importantly, learn how to budget and keep track of your spending. If you only make $X per month at your job, you cannot spend more than $X per month. You must prioritize the important expenses, such as housing, food, and utilities. If you have trouble affording the basics, apply for federal or state assistance so that you don't sink further into debt.

© Had2Know 2010

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