How Do I Get Rid of Over 100K in Credit Card Debt?

You'll need an aggressive plan to get rid of $100,000 in credit card debt. The mounting finance charges will make it virtually impossible to pay off the cards by making the minimum payment each month. At an overall interest rate of 18 percent, a $100,000 debt would increase by more than $18,000 over the course of a year.

Instructions

1

Get a home equity loan. Not everyone will qualify for a $100,000 loan, but you should explore this option if you're a homeowner. According to figures cited by the Federal Trade Commission, homeowners typically can borrow up to 85 percent of the appraised value of their homes minus the amount due on the first mortgage. That means you'll need a minimum of $118,000 worth of equity in your home to qualify. Contact your bank or mortgage company to inquire about home equity loans.

2

Enter into debt settlement to significantly reduce the balance on the credit card debt. Debt settlement allows you to pay off your credit cards by offering less than the full amount owed. According to The New York Times, credit card companies sometimes settle delinquent accounts for about half the amount owed -- or even less. Debt settlement generally becomes possible after you have fallen four to six months behind on your payments, and your credit card company is preparing to sell your account to a debt collector for pennies on the dollar. You can hire a debt settlement company to negotiate for you, but the Federal Trade Commission says you should do it yourself to save money on fees and avoid scams.

3

Sell some of your assets to pay down the debt. Cash in your 401K and other retirement accounts. Sell anything you can to raise the money.

4

File for bankruptcy. Personal bankruptcy might be your only option if you can't raise the cash needed to pay off $100,000 in credit card debt. See a bankruptcy attorney about the two types of personal bankruptcy -- Chapter 7 and Chapter 13. Chapter 7 is the simpler form and you could be rid of your debts in just months. Chapter 13 takes longer -- up to five years.