I Need to Get Rid of $5,000 in Credit Card Debt. What Should I Do?
If I owe my co-worker $5 for pizza, I feel little angst as I Venmo the payment.
But when I owe, say, my credit card company $5,000, I’m prone to panic (and then stress-eat more pizza).
But when you break it down into more digestible amounts, $5,000 is a doable amount over time, so long as you create a plan of attack.
That doesn’t necessarily mean you have to start selling everything you own to make a payment (or stop eating — heaven forbid). Sometimes it just takes a little digging to find extra cash where you’re already spending.
How to Pay off $5K in Credit Card Debt
Creating a plan of attack for paying off debt can feel overwhelming at first, but it doesn’t have to be, especially if you break down payment schedules to fit your budget.
Rather than going it alone, check out these resources for ways to help pay down your credit card debt. So you can get back to more important things. Like pizza.
1. Ask This Website to Help Pay Your Credit Card Bill This Month
If you have credit card debt, you know. The anxiety, the interest rates, the fear you’re never going to escape…
And the truth is, your credit card company doesn’t really care. It’s just getting rich by ripping you off with high interest rates. But a website called AmOne wants to help.
If you owe your credit card companies $50,000 or less, AmOne will match you with a low-interest loan you can use to pay off every single one of your balances.
The benefit? You’ll be left with one bill to pay each month. And because personal loans have lower interest rates (AmOne rates start at 3.99% APR), you’ll get out of debt that much faster. Plus: No credit card payment this month.
AmOne won’t make you stand in line or call your bank, either. And if you’re worried you won’t qualify, it’s free to check online. It takes just two minutes, and it could help you pay off your debt years faster.
2. Stop Giving Your Car Insurance Company Extra Money
You’re probably overpaying for car insurance. And how would you know, really?
Have you shopped around lately? Have you compared rates from the 20 largest auto insurers that do business in your area? That sounds kind of difficult and time-consuming, doesn’t it?
Fortunately, a service called Gabi will do it for you, 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.
Gabi says it finds an average savings of $720 per year for its customers.
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. Find Some Hidden Cash
Remember when getting the mail was fun? Now it’s just bills. And Valpak envelopes.
But for Colleen Rice, checking the mail meant finding checks. For doing nothing. Seriously. Since she started using a free website called Rakuten, she’s received $526.44.
Rakuten has the hookup with just about every online store you shop, which means it can give you a kickback every time you buy toilet paper on Amazon — even book that flight home for Thanksgiving.
Rice says she uses Rakuten for things she already has to buy, like rental cars and flights. She even used the money she earned to help her pay for her recent cross-country move.
It takes less than 60 seconds to create a Rakuten account and start shopping. All you need is an email address, then you can immediately start shopping your go-to stores through the site.
Plus, if you use Rakuten to earn money back within the first 90 days of signing up, it’ll give you an extra $10 on the first check it sends you.
Talk about money for nothing.
4. Earn Cash While Watching Cooking Videos Online
If we told you that you could get paid to watch videos on your computer, you’d probably laugh.
It’s too good to be true, right?
But we’re serious. A website called InboxDollars will pay you to watch short video clips online. One minute you might watch someone bake brownies and the next you might get the latest updates on Kardashian drama.
All you have to do is choose which videos you want to watch and answer a few quick questions about them afterward.
No, InboxDollars won’t replace your full-time job, but it’s something easy you can do while you’re already on the couch tonight wasting time on your phone.
Unlike other sites, InboxDollars pays you in cash — no points or gift cards. It’s already paid its users more than $56 million.
It takes about one minute to sign up, and you’ll immediately get a $5 bonus to get you started.
Tiffany Connors is a staff writer at The Penny Hoarder.