Reader advice: How to dump debt
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Raid the IRA
At 43, we had over $200,000 in two (IRA) accounts, but we were heading for bankruptcy just the same. Against all advice, we cashed in a portion and took the tax hit, but it was enough that we still have about half of what we had in our IRA and we were able to pay off most all of our debt. We have a few thousand left to pay on an equity line, but paid off our car, paid off a college loan, and established a savings plan and a budget.

How readers eradicated debt

• By all means • Greenbacks rule • Trade credit for debit cards • Raid the IRA • Play the transfer game • Enlist help • Persevere after payoff

I know this is exactly what everyone says not to do, but my husband looked at it this way: He could not work 65 hours a week (which he still does) and come home to having nothing. With two kids in college and two more to go soon, it saved our financial life -- and probably our marriage -- and we now have control over our finances. I think we're OK with working for a few extra years or living more simply down the road. The fact that we are actually able to enjoy our lives now, and each other, is all the repayment I will ever need.
Denise and Rodney L.
Youngstown, Ohio

Play the transfer game
We erased about $4,000 in credit card debt in 18 months. We cut out fast food for one year, stopped charging and transferred balances to about six cards with zero percent interest until the debt was paid off. Our credit score went up 60 points. Now I rarely use credit cards, but if I do, I pay off the entire amount when the bill comes.
Shaunna Privratsky
Fargo, N.D.

Enlist help
We were considering bankruptcy, so we talked to a lawyer about it. The lawyer did not recommend bankruptcy, but referred us to a lending agent to refinance our home loan (we had an ARM, which was about to raise rates) and to a credit counselor to help with the two major credit cards.

We were not paying much more than the interest on the credit cards and that organization got the interest rate lowered so we could catch up. Now we do not owe them anything. Also, as soon as we could, we refinanced our home loan and now all we owe is a small medical bill and less than $50 on revolving credit. And the phone calls and nasty letters have stopped.
Izzy Miller

Persevere -- even after payoff
I conquered debt with perseverance and discipline. First, I made a list of all the bills, then chipped away at all of them steadily. Once those with small balances were paid off, I split up and applied that bill's payment amount to the others. Any additional money (i.e., portions of tax refunds) was used to pay down the debt with the highest interest rate. I'll admit, I didn't have the huge problem that I heard of with others, but I definitely had a balance -- mostly student loans.

Once everything was paid off, I started putting the amount I was paying into my savings. I now have a comfortable cushion in savings. I had a setback when I loaned a desperate friend money from my 401(k) to pay off his car (and he can't pay me back). I now have the same plan going -- put money to that, and once that's paid off, I will start adding that bill's amount to my savings -- or better yet, increase my 401(k) contribution.
Joanne
Portage, Ind.