Credit card debt can creep up on you before you know it, thanks to fees and interest that are subject to change (always for the worse) with very little notice. If you’re not in the habit of paying off your credit card balances in full every month, you could soon find yourself mired in debt that never seems to go down even when you make a payment.

Since you can’t close your eyes and make credit card debt go away, you’ve got to find a way to pay it off – the quicker the better. Many people take out loans to accomplish this. It makes sense; better to pay a single monthly payment at a low interest rate than to make several credit card payments each month, all at higher rates of interest.

But some loans are a bad idea. For starters, let’s take a look at home equity loans. They are often easy to obtain and offer low interest rates. But what if you take out a home equity loan to pay off credit card debt, only to find yourself falling behind on your loan payments? Now you’ve got more at stake than your credit score; you could actually lose your house.

If you’re certain you’ll be able to handle the payments, a home equity loan might be useful for paying off other debt. But be honest with yourself. If you think delinquent payments are a possibility, find another source of money that won’t put your home at risk.

Many people borrow against their retirement funds when they want to pay off their credit cards fast. This isn’t a good idea, either. For one thing, the more money you keep in these funds, the more they will grow. The more money you take out, the less growth potential the fund will have. 

Borrowing from your 401K might sound like a fast solution to credit card debt, but consider the consequences: it will be more difficult to keep up your retirement fund contributions while you’re also trying to repay the loan. And if you get laid off, you’ll have about 90 days to repay the whole loan before it gets taxed and penalized.

If your credit card debt can realistically be paid off in a year, try transferring the balance to a card with a 1-year introductory rate of 0% interest. You can also talk to your bank about a low-interest personal loan, and use those funds to pay off your credit cards.

Just paying off the debt isn’t enough; you also need to figure out how you got so indebted in the first place. Were you paying for urgent expenses like car repairs? Then you should set up an emergency bank fund to pull from when those situations arise. Were you simply living beyond your means? Stick to a good budget, and you’ll get everything you need without overspending on frivolous items. There are many ways to cover unforeseen expenses and little extras, but credit cards are a costly option.

When you watch your bills pile up month after month, it can be tempting to take advantage of short-term loans or other quick-fix financial options. But some of these tactics will leave you deeper in debt than when you began. To give yourself a fighting chance, avoid these four dubious debt solutions; they’re just not worth the cost.

Fee Harvesting Credit Cards

These subprime credit cards are designed for people with poor credit ratings. They’re often the last resort for potential card holders who need credit, but can’t qualify for traditional credit cards. True, they can help you build your credit history, but at what cost?

Imagine applying for and receiving a $500 credit line. That’s not too bad until you factor in the $250 account setup fee, $90 annual membership fee, and $40 monthly usage fee. Sadly, those numbers are typical of the most predatory fee harvesting cards available. Some applicants end up paying more than their line of credit is worth.

If you’re in the market for a subprime credit card, be sure to shop around for one with minimal fees. 

Payday Loans

These loans are cash advances that you must repay in a short amount of time – usually two weeks. The really horrific element is the interest; expect to pay $2,000 or more for the questionable privilege of borrowing $1,500. It’s not uncommon for payday loan borrowers to fall into a downward spiral of debt when they’re unable to repay the loan on time. They borrow more money, fall short again, and borrow still more, all at exorbitant interest rates.

Never, ever take out a payday loan. If you’re having a financial emergency, it’s far better to borrow from friends or family members than to accept money from a payday lender.

Credit Card Cash Advances

When you need money fast, it’s tempting to take out a cash advance through your credit card. But stop and take a moment to decide if this is something you really need to do. Different interest rates apply to cash advances than apply to regular purchases. You might use your credit card to pay your electric bill at an interest rate of 12%, but if you get a cash advance to pay the same bill, you can expect to pay 25-30% interest.

The costly interest rates of cash advances will keep you in debt longer than necessary. If you have to charge something, go ahead and charge it. But leave the cash advance option alone.

Your 401K

Cashing out of your 401K plan before age 59 ½ is a fast way to drain your retirement funds. Premature withdrawals will result in hefty fees, penalties, and taxation. No matter your age, it’s best to leave your 401K alone until you’re ready to retire. If you want an account that you can call upon in tough financial times, get a traditional savings account or put your money into a ROTH IRA which doesn’t penalize you for cashing out.

Dark times have fallen on the economy, and it seems that messages of gloom and doom are everywhere. Stocks are falling, taking the value of 401K plans with them. And we won’t even get into the mortgage mess, rock-bottom home values, and constrictive credit squeeze. Millions of Americans have had to sit by and watch their resources dwindle over the past year. Even traditionally safe bets, like money-market mutual funds, have begun to net losses.

Well, how about some good news? Your money doesn’t have to be in jeopardy. In fact, there are still some investments you can make to ensure that your savings stay intact and retain their value. Here are some of the safest investments you can make in these troubled times.

Your 401K

It might seem counterintuitive, but if you have a 401K plan, you should hang onto it even if you’re seeing negative returns right now. Instead of pulling out of the fund, find out if your 401K offers stable-value funds. These funds are very diversified portfolios, meaning that your money isn’t concentrated in one single area, but spread over many. That slashes some of the risk of investing. Also, these funds invest in guaranteed bonds and insurance contracts from many different companies. If you don’t want to put all your eggs in one basket, try a stable-value fund for your 401K.

Money Market Funds

But didn’t we just learn that some money market funds are losing money? Yes. However, most of them are still profitable and safe. In fact, with the new Temporary Guarantee Program that went into effect on September 19th, investors are guaranteed that, for every dollar they invest, they’ll see a dollar in return. It’s worth noting, however, that this rule applies only to money that was invested in a money market fund when the program commenced. Also, some money funds might not elect to sign up for this insurance. Get the facts before you assume your money is safe in a money market fund.

Bank CDs

All bank CDs and money market accounts (which aren’t the same thing as money market funds) are insured by the FDIC. If you put your money into a money market account, it will be insured up to $250,000 for a single account holder. Joint accounts have protection for up to $500,000. These recently raised limits will stay in effect until December 30th, 2009. Get your money in a money market account to enjoy returns almost four times greater than those seen in typical money funds.

It can be hard to plan your financial future when your stocks and even your bank are in danger of failing. But all isn’t lost; play it safe with your money now, and you’ll have funds to rely on when it’s time to retire.