 TITLE: How to Pay Off Credit Card Debt When You’re Short on Cash CONTENT: Look for Debt Relief\n--------------------\nWhether you work with a credit counselor or on your own, you have several options for eliminating debt, known as debt relief:\n*   **Apply for a debt consolidation loan.** Debt consolidation allows you to convert multiple debts, commonly several credit card balances, into a single loan. That can make repayment simpler, and can help you budget since you'll be required to make a fixed payment toward the loan each month. A debt consolidation loan is best for those with good or excellent credit scores who can qualify for the lowest available interest rates.\n*   **Use a balance transfer credit card.** Another option for those with good credit is to apply for a credit card that offers an introductory 0% APR period on transferred balances, known as a balance transfer card. You'll need to make a plan to pay off your debt before the zero-interest period ends and the new (higher) interest rate kicks in, but if you do, you'll potentially save a substantial amount in interest. One caveat: Balance transfer cards often charge a balance transfer fee, which typically comes out to about 3% to 5% of the transferred amount. This will add to your debt load, but with the savings on interest, you're still likely to come out ahead if you keep up with your payments.\n*   **Opt for the snowball or avalanche methods.** You can also take the reins on your own and pay down multiple credit card balances with specific strategies. The most common are the debt snowball and debt avalanche methods. You'll use extra money to pay more than the minimum monthly payment required on one debt until it's gone, then apply the monthly payment from that debt to the next one. Using the debt snowball, you'll pay off the smallest balances first; you won't save the most in interest, but you'll collect wins faster. Using the debt avalanche, you'll pay off the balances that carry the highest interest rates first.\n*   **Participate in a debt management plan.** Nonprofit credit counselors offer these plans, in which a counselor negotiates with your creditors on your behalf to lower interest rates or fees, or potentially even your monthly payments. You'll make one monthly payment to the credit counseling agency, and the agency will pay your creditors, simplifying your bills. You'll have to close the credit card accounts included in the plan, which can affect your credit scores, and you'll pay a setup fee and monthly fee to participate. Consider it if you aren't concerned about losing access to your credit cards during the process, the fee is manageable for you, and you're unsure whether you'd get debt-free otherwise. END