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How can you pay off debt without bankruptcy?

Most people in America have some amount of credit debt that affects them each month. It's normal for a large group of people to have balances on credit cards and to maintain those balances from month to month.

That's fine, so long as they can afford the monthly payments and a little extra to pay down the principal balance. If not, then interest stacks up and makes it seem like the debt will never be eliminated.

For some people, the last resort seems to be bankruptcy, but this doesn't have to be the only solution. Other options include snowballing the payments, working an extra job, selling items to pay down debt and negotiating with the credit company directly.

Snowball-method payments

Snowball payments work because you take the money from a paid-off card and put it into the payment for the next debt you have. For instance, if you pay $100 on a Visa and pay it off, take that $100 and add it to your next payment for another debt. Instead of paying $50 on a MasterCard, for instance, you'd pay $150. This tactic of rolling your payments together works wonders to pay off debt.

Pick up work

Working even a few extra hours a week could give you enough to pay off a card a little sooner. Just a few hours add up fast.

Sell, sell, sell

If you have old clothing, electronics or other items you don't need, don't throw them out. Sell them instead. Even if you only make a few dollars, put that money toward your debt.

Contact the company

Contacting the credit company is a good idea, too. They might have deferment options or a way to reduce interest or other fees.

These are a few ways to tackle debt. The right attitude and plan can help you become debt free.

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