How to Get Rid of a Store Debt

by Joey Papa

Overview

Paying down on your debt can be one of the best things you can do for your credit score. Tackling store debt is a great place to begin. By focusing on one type of credit card at a time you can pay down your credit owed to stores and improve your overall credit score. The most common ways to get rid of a store debt is to work harder and pay a higher monthly payment, attempt to settle your debt or declare bankruptcy.
Pay it Off

Step 1

Start setting aside money every month to pay more than the minimum on the store debt. Even if it's $20 more every month, you will pay your balance much faster than if you're were simply paying the minimum amount required.
Step 2

Set aside $5 on a weekly basis as a starting place. Don't use the money until your receive your bill. Add the extra money you have saved to the minimum payment.
Step 3

Take a part-time job and use that money exclusively to pay toward the debt.

Attempt to Settle

Step 1

Attempt a settlement with your store debt. Talk with a financial counselor about using this approach as it is intended as a method to avoid bankruptcy.
Step 2

Stop paying on your credit card for that store for a few months and inform your creditor by mail that you are requesting to settle your account.
Step 3

Wait for a response from the creditor. If they are willing to settle, try to settle for 50 to 60 percent of what you owe. Keep in mind you will have to pay the settlement fee in one lump some.

Step 1

Declaring bankruptcy is a last resort scenario to get rid of store debt. Bankruptcy is a big financial move and should not be done in haste.
Step 2

Contact a bankruptcy lawyer and set up a consultation appointment. Discuss your financial situation and why you feel like bankruptcy is the best option for you.
Step 3

Follow your lawyer's instructions and advice. Be sure to know the consequences to making this decision.

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Always consult with a professional financial adviser before making any major financial decisions as they can negatively affect your credit rating.
Always consult with a professional financial adviser before making any major financial decisions as they can negatively affect your credit rating.