So many people are buried in credit card debt these days. In a perfect world, the companies who are all too happy to extend your credit would also help you dig your way out, but, that isn't reality. They are in the big money business and are only too thrilled to extend you way beyond your limits; even beyond what they know you can afford. And, it isn't illegal for a credit card company to take advantage of consumers, so, we are pretty much on our own and need to be diligent about what we charge, and our ability to pay the bill.
But, this isn't about that. Today's missive includes suggestions about what you can do to eliminate your big balance(s).
1) The first thing: try to lower your rate.
Of course, ask your credit card company. I honestly don't think it'll work, but try. If it doesn't, find a better deal. Shop around. State chartered banks (savings and loan institutions, trust companies and credit unions) usually have the lowest rates. Go through the phone book (still have one of those?) and call around and ask about rates. When you find one, call your existing company and threaten to pay off (transfer) your balance and close the account if they don't match the rate.
If you do find a transfer deal, make sure you read the fine print. The cover letter may offer 0% financing, but that is usually for a very specific period of time and if you don't pay off the balance before the expiration, you could end up with a higher rate and worse deal than you started with.
2) Investigate a personal loan.
Again, state chartered banks usually have the best deals .. but ask around. You may be able to consolidate your debt and pay it off at a rate much lower than what credit cards charge
3) Homeowners, ask about an equity line of credit
This is actually my least favorite option because you really have to understand what you are signing. Many of these loans are variable rates which, as I am sure you have heard, start low, and then escalate. They are also usually tied to the prime lending rate .. and who knows where that'll go in coming years. You don't ever want to do anything to jeopardize your home, so, if you decide on this option, make sure you know exactly what the costs will be for the life of the loan.
Again, I believe for the most part, credit card companies charge usurious rates, should be ashamed of how they treat consumers and probably regularly congratulate themselves on dodging any new regulation.

In the spirit of full disclosure, I have to admit, I am cranky. Lucky enough to have my mother's genes, I am rarely sick. In nearly 30 years here at WCVB, I don't think I've had a sick week ... ever. Until now. It wasn't exactly a full week, but even the 4 day s I was forced to stay home this week has me still feeling out of sorts. The only good part about the fever, cough and resulting infection was the fast-track antibiotic I (happily) responded to, quickly.
But, I really wanted to write today about Sharper Image and their new (revised) plan to accept the gift cards they initially refused to honor, when they first filed for bankruptcy protection. They'll take them now, but, in order to get full value (of the money already spent in their stores on the gift card), you have to spend twice the amount. In other words, if you have a $50 gift card, you have to put it toward something $100.00 0r more. Fine, if there is something you really want and intended to buy anyway.. but, not so fine if you are spending the extra cash just to feel like you aren't losing anything.
So, I have another idea. When all of this happened a couple of weeks ago, Brookstone saw it as a marketing bonanza and quickly welcomed Sharper Image customers, offering to accept their gift cards..which they are doing AT FULL VALUE .. FOR FULL VALUE.
Attention Sharper Image shoppers: just on principal, you might want to check out the goods at Brookstone.
Have a good weekend.