01 Sep Getting Rid Of Your Credit Card Debt
If you’re like about half of Americans today, you may have some credit card debt hanging around. In fact, the average household today has a balance of $6,200 on their credit cards – and many people have a much higher balance than that. No one who has credit card debt wants to keep it around – that’s when you should consider looking into credit card debt relief.
You can find a credit card relief company to work with; they will help you every step of the way as you work through the process of ridding yourself of your debt. You can also read on to find some tips on how you can work on your own to relief the debt of your credit cards.
Seek Outside Help
Figuring out how to get rid of your credit card debt can be complicated, but the good news is that you don’t have to do it on your own. You can contact a credit card relief company like Consumer Credit Card Relief, and they can help you evaluate your budget alongside your debt to work with you in creating a personalized plan that suits your individual needs. The benefit of this choice is that you’ll have experts working on your side to help you along in your journey of credit card debt relief; these experts will make sure that you explore all of your options to make the process as easy as possible.
Consider Debt Consolidation
One option that Consumer Credit Card Relief may suggest for you is debt consolidation. Debt consolidation is a process where a company can combine all of your high-interest credit card debts into one lower-interest debt. When you consolidate credit card debt, it makes it easier for you to get rid of your credit card debt because you’ll only have one payment to worry about, and you’ll be able to get out of debt faster with a lower interest rate.
There are three main ways that you can consolidate credit card debt:
- Utilize a balance transfer on a new credit card with 0% APR
- Get a lower-interest personal loan
- Find a debt management program
Utilize a balance transfer on a new credit card with 0% APR
Occasionally, credit lenders will offer a 0% APR balance transfer credit card to consumers with particularly exceptional credit. This means that if you open the credit card and transfer your existing balances from your old accounts to the new card, you could pay as little as 0% interest on that balance for however long the promotion runs, which can be anywhere up to 24 months. A point to keep in mind is that even with 0% APR, you’ll have to pay a fee for initiating your balance transfer onto the new card. That fee is usually around 3% of the balance you’ll be transferring, but if you can manage to pay off the entire balance on the new card before the no-interest promotion runs out, you’ll save a lot of money on interest. Make sure you pay your entire balance before the promotion ends, otherwise, you can end up paying more in interest than you would have even before the balance transfer. Remember that you’ll need to already have good or exceptional credit to qualify for this method of debt consolidation.
Get a lower-interest personal loan
This method is similar to the method of using a balance transfer credit card to consolidate your debt. With a low-interest personal loan, you’ll be able to combine all of your current balances into one lower-interest personal loan. The higher your credit score is, the better the interest rate you can qualify for on a personal loan. It’s important to make sure that you get a loan with an interest rate that is significantly lower than the rates of your credit card debts, otherwise the cost of consolidation will outweigh the benefits. The best way to find out the ideal personal loan for consolidation that you can qualify for is by calling around to different banks and credit unions to see which institution has the lowest interest rates for the most appropriate amount of time. While it may seem like picking the shortest loan is the best option, taking out a loan with a shorter term means that your monthly payments on the loan will be higher, so you should pick a loan that fits your overall budget. Once you find the best loan for your needs, you’ll take out that loan and use that money to pay off the debts that you already have. Then you’ll only have one loan (the new one) to keep track of, and ideally, that loan will have a lower interest rate.
Find a debt relief program
Maybe your credit isn’t good enough to get a low-interest personal loan or a 0% APR balance transfer credit card, or maybe you just find all the options and steps too overwhelming to tackle on your own. If that’s the case, a debt management program may be a good option for you. With a debt relief program, you’ll meet with a credit counselor to go over all the options before enrolling in the program. The counselor will work with you to analyze your budget and find a reasonable monthly payment plan for you. Then, the counselor advocates for you to all of the creditors that you owe, and they get you on a repayment plan that will get you debt-free as easily as possible while avoiding penalties or interest charges from the lenders.
Options to Avoid
You may see the options above as time- and effort-consuming, and you may be tempted to consider more sinister options for debt relief. These options can include taking out a loan on your house, taking money out of your retirement funds, or even filing for bankruptcy. These options should be avoided at all costs in comparison to the debt consolidation options listed above because they have the potential to set you further away from your debt relief goals rather than getting you closer to reaching them. If you feel that you can’t tackle your debt on your own, remember that you always have the option of reaching out to a credit card relief company to help you relief the debt of your credit cards.
Get started today!
Debt relief is attainable for you. If you have credit card debt that is overwhelming your mind and your wallet, you have good options for debt relief to consider. The easiest way for you to take that first step in figuring out your plan to reduce your debts is by reaching out to professionals who can help you get there. The experts at Consumer Credit Card Relief will work directly with you to help you get out of debt and back on a path towards freedom over your finances. You can get a free quote or more information on how to get rid of your debt so don’t hesitate, get started on alleviating your debt now.