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
Every month, you make payments toward your credit card debt. But you never seem to make a dent. It’s because of those sky-high interest rates — as much as 24% interest. It can feel impossible to get ahead.
But MoneyLion could help you find offers to cut your interest rate by 70% as soon as tomorrow.
Here’s how it works: MoneyLion can match you with new loan offers at a lower interest rate — as low as 5.20% APR*. That’s 70%* lower than the average credit card interest rate. And it’s the key to finally getting ahead.
You can use this new loan to pay off all your existing credit card debt, leaving you with one (cheaper) monthly payment that will help you get out of debt faster.
If you have a credit score of at least 620, you could get up to $50,000. With no collateral. And terms go up to 144 months.
Worried you won’t qualify? Take two minutes to check online and see if you could cut your credit card interest rate by 70%.
*Based on creditworthiness. Average credit card interest rate is 24.72% as of 8/14/24, according to Forbes Advisor’s weekly credit card rates report.
2. Stop Giving Your Car Insurance Company Extra Money
Here’s the thing: your current car insurance company is probably overcharging you. But don’t waste your time hopping around to different insurance companies looking for a better deal.
Use a website called EverQuote to see all your options at once.
EverQuote is the largest online marketplace for insurance in the US, so you’ll get the top options from more than 175 different carriers handed right to you.
Take a couple of minutes to answer some questions about yourself and your driving record. With this information, EverQuote will be able to give you the top recommendations for car insurance. In just a few minutes, you could save up to $610 a year.
3. Get Paid $225/Month While Watching Movie Previews
If we told you that you could get paid while watching videos on your computer, you’d probably laugh.
It’s too good to be true, right?
But we’re serious. By signing up for a free account with InboxDollars, you could add up to $225 a month to your pocket. They’ll send you short surveys every day, which you can fill out while you watch someone bake brownies or catch up on the latest Kardashian drama.
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.
Signing up takes about one minute, and you’ll immediately receive a $5 bonus to get you started.
It takes about one minute to sign up and start getting paid while you watch the news.
Tiffany Connors is a staff writer at The Penny Hoarder.
