More For Your Money - University of Illinois Extension

http://MoreForYourMoney.extension.uiuc.edu

More Strategies to Control Debt

Increase Your Income

As you look at your debts, you may decide that you need more money to pay off your debt.  What are your options?  Can you work more to earn more money?  Check back to the activity in Adding More Income for suggestions on how to increase your income.

Voluntarily surrender the item

If you bought an item on credit, can you voluntarily surrender or give back the item?  Before you do this, however, you need to know how much longer it will take you to pay off the debt before it is yours.  If you only have two more payments, for example, you will want to continue paying.

Sell the item

Use the cash to pay, or partially pay, the debt.  Before you do this, check the fine print on your contract.  You may not be able to do this.   

Contact Your Credit Card Company

Check with your credit card company to see if it will lower your interest rate.  Even a few lower percentage points will save you money. 

It may also be possible to transfer a credit card debt to a card with a lower interest rate.  Check that the interest rate really is lower and will stay low.  Some credit cards have low initial rates that increase to a very high rate after the “introductory period.”