When the phrase “It’s fun to” comes up in conversation, it’s probably not followed by “pay off credit card debt.”
Paying off debt is associated with living under a rock, eating ramen noodles and cutting the bottom off your toothpaste tube to get the last bit — none of which are very “fun.”
But here’s the thing: Paying off debt doesn’t have to be boring. It doesn’t even mean reverting to listening to concerts from outside the venue and eating your friend’s leftovers from your favorite restaurant.
Here’s How to Pay off Credit Card Debt and Still Have a Life
Achieving freedom from debt just means getting creative with the resources available to you. And we love getting creative. Here are some clever ways to pay off your credit card debt without giving up fun.
1. Ask This Website to Pay Your Credit Card Bill This Month
Tina Russell/The Penny Hoarder
No, like… the whole bill. All of it. All that debt racked up from the 300 destination weddings your friends made you attend (thanks!) could be paid by the end of this month.
Your credit card company is ripping you off with insane rates, and it’s getting rich off of you. But there are other, nicer companies that’ll help you out. A website called Fiona knows the best ones and could pair you up as soon as tomorrow.
Here’s how it works: Fiona will match you with a loan that’ll cover your credit card tab. Use that loan to pay off your debt, then make monthly payments to repay the loan. It could lower your monthly payments and help you pay off that debt a lot faster. Plus, no credit card payment this month.
Fiona won’t make you stand in line or call a bank. And if you’re worried you won’t qualify, it’s free to check online. It takes just two minutes, and it could save you thousands of dollars. Totally worth it.
Now you can finally stop holding a grudge against that friend who thought a Mexico wedding was a good idea.
2. Use This $720 to Put Towards Your Credit Card Debt
You’re probably overpaying for car insurance. And how would you know, really?
Gabi says it finds an average savings of $720 per year for its customers. Before you spend it all in one place, how about using it to reduce some credit card debt?
Gabi is free to use and you don’t even have to fill out any forms. Simply link your insurance account and provide your driver’s license number, and Gabi will go to work.
Once you link your insurance account to Gabi, it will:
- Scan your existing insurance plan.
- Analyze what coverage you have.
- Compare the major insurers’ rates for that same coverage.
- Help you switch on the spot if it finds you a better rate.
It is a true apples-to-apples comparison at the same coverage levels and deductibles you currently have. Once you sign up, you never have to shop again. Gabi’s software has your policy on file and keeps on monitoring for savings as your life changes.
3. Search for Unclaimed Money
Tina Russell/The Penny Hoarder
State treasuries throughout the U.S. have more than $43 billion in unclaimed funds, according to The New York Times. Just sitting around! Waiting for you to come play lost and found.
In 2017, one South Carolina man hit the jackpot. He got a phone call from his state treasurer letting him know he was entitled to $763,000 in unclaimed money. That’s, like, 63 years of rent.
We advise you to be careful of calls like this; they could be scams. But you can take matters into your own hands and see if you have any unclaimed money floating around.
Check with the National Association of Unclaimed Property Administrators. Click your state on the map, and it’ll redirect you to your state’s appropriate search site. (Beware: There are several look-a-like sites out there. Be sure you’re searching legitimate ones.)
Penny Hoarder reader Kelli Howell heeded our advice, performed a quick search, and found unclaimed money in her husband’s name.
“As I was scrolling through, I saw his name and his middle initial,” she says. She asked him to confirm his old Florida address; he grew up in Tampa. Sure enough, Mark Howell was entitled to $56 from a “matured insurance policy.”
Kelli immediately searched her other family members’ names. Her husband was the only who had any money to claim. And, sure, it’s $56, but that’s not bad for an unexpected check, right? We’ll take it!
4. Stop Deleting Your Emails
It turns out deleting your emails could be costing you money. Intrigued?
One of our secret weapons is called Paribus — a tool that gets you money back for your online purchases. It’s free to sign up, and once you do, it will scan your email for any receipts. If it discovers you’ve purchased something from one of its monitored retailers, it will track the item’s price and help you get a refund when there’s a price drop.
Plus, if your guaranteed shipment shows up late, Paribus will help you get compensated.
Disclosure: Paribus compensates us when you sign up using the links we provide.f
5. Pay Off Your Credit Cards by Delivering Milk
The grocery store is a surprisingly zen place. Somewhere between the soothing elevator music, the free samples and the wafting aroma of rotisserie chicken, you settle into a peaceful groove.
None of the stress of work or home — it’s just you and the aisles.
Some people, for some reason, don’t feel the same. They’d rather avoid it altogether. And with an app called Postmates, you could get paid to pick up a few extra groceries for them.
Even better than getting paid to grocery shop? If you need the money, like, now, you can cash out instantly after each delivery.
Holly Gaston, of San Francisco, California, has tried plenty of side gigs. With Postmates, she makes an average of $15 an hour. Plus, she says it’s been much more enjoyable than any of her previous side gigs.
Signing up shouldn’t take you more than about three minutes. The hardest part will be choosing which selfie you want to use as a profile pic.
6. Withdraw Cash From the ATM on Monday
Carmen Mandato/ The Penny Hoarder
There are always those weeks — the ones where you promise you’ll pack a lunch for work then end up eating out each day.
Now, we’re not saying only eat soggy leftovers all week. But if you have trouble staying on track — whether it’s coffee, lunch, dinner or all the snacks — set yourself a spending limit and take exactly that amount from the ATM on Monday. Then, only spend that throughout the week. Once the cash is gone, it’s back to leftovers.
7. See If Your Cell Phone Company Owes You $80
Is your cell phone company overcharging you?
Probably. In fact, there are secret discounts it doesn’t want you to know about.
But a tool called Trim knows how get them for you. William Ellis, a savvy saver from Indiana, was able to get $80 a year back in his pocket when Trim convinced Sprint to lower his bill — for the same plan. He didn’t even have to pick up the phone.
You can find out how much you’re overpaying by signing up for Trim. Then, Trim handles the rest.
Trim takes an upfront commission on any money it recovers for you, but there’s no charge if it’s not successful. Last month, Trim saved its users more than $1 million.
8. Use Your House to Pay Off Credit Card Debt
Homeowners: Did you know your home, even if it’s not paid off yet, could help you escape credit card debt?
You might consider tapping into your home’s equity — that’s the money you’ve paid toward your mortgage — through a lender like Figure. The idea is to borrow money from your home’s equity to pay your credit bard balance in full.
This might feel like you’re simply transferring your debt, but you’ll wipe out those high interest rates (the average these days is 17.14%, according to the Federal Reserve), which will get you on a faster track to that debt-free life.
First, decide if a home-equity line of credit is right for you. You’ll be using your home as collateral, but your new interest rate will be much lower than that of your credit card.
Then, get a free quote from Figure. You can borrow up to $150,000, with rates starting at 4.99%.
And, unlike some other lenders, Figure doesn’t slap you with sneaky fees. You’ll pay an origination fee (typical), but you won’t be charged application fees or even early repayment fees.
It takes five minutes to check your rate. If you like what you see and your application is approved, Figure will fund you within five days.
Terms and conditions apply. Visit figure.com for further information.
9. Try Starving and Stacking
Carmen Mandato/The Penny Hoarder
Don’t worry. You can still eat. The starve and stack budgeting method is geared toward couples, especially newlyweds. Couples combine their finances and live exclusively off one income for 18 to 24 months.
Use the additional income to invest, establish a rainy day fund and pay off debt. That’s what Penny Hoarder Jen Smith did. She and her husband practiced the starve and stack method for two years and were able to pay off $78,000 in debt.