The Best Way To Remove Credit Card Debt In 2020
The Best Way To Remove Credit Card Debt In 2020

Imagine handing out over $15,000 of your savings. The idea would cause most people to imagine a succession of disasters. Everything from healthcare to housing would begin to fall down. But now imagine how much you owe on your credit cards. The average response to this might be shocking. But the average person now owes more than $15,000 on their cards. That worst case scenario of losing $15,000 would occur if they tried to get out of debt. They would, essentially, go into one type of debt by paying off another. However, there are some solid strategies people can use to erase their credit card debt and enter into full financial stability. In fact, one can often do so with four simple steps.

How to form a payment strategy

You’ll want to begin working on credit card debt relief by forming a solid strategy. However, it’s also important to remember an important point before beginning. If gathering together large sums of money were easy than there’d be no need for credit cards in the first place. Credit card debt relief for a large sum of money will take an equally significant amount of planning. This means that your overall strategy will usually need be composed of several smaller plans. But all of this does begin with something very simple and easy to understand. You’ll need to find out exactly how much you owe.

It’s important to consider every single credit card in the household. It’s all of your cards and your spouses cards. You’ll want to get a solid record of how much is owed on each card, the minimum payment per month, and their interest rates. You should also note how much you’re paying on each card.

The unfortunate fact is that the minimum payment is seldom going to be enough. The interest rate, or APR, is set down so that credit card companies can make a profit. The credit card companies set minimum payments and APR values in hopes that one will always be in debt.

As such, you should try to ramp up payments if possible. This will seldom be a fun process. You’ll likely have to cut out some forms of entertainment or recreation. But it’s also important to remember that those activities will still be there after the credit cards are paid off. You should still have some general quality of life. People can seldom stick to overly harsh budgets. But if you’re giving yourself some breathing room with a budget it’s easier to stick to in the long run.

It’s also a good idea to automate the payment process. This can be a good way of essentially forcing your own hand when it comes to a budget. If you know that funds are coming out of your bank account than you’ll be more hesitant to stray off of the new budget.

Working with debt consolidation

While this is a solid strategy, there’s going to be one big sticking point for a lot of people. Earlier in the process you gathered together data on every credit card for the household. But you might have noticed that many of them have different APR values. This makes it considerably more difficult to budget around. The more variables you’re dealing with the more complex it becomes.

This is why people with multiple cards often look into 0% balance transfer credit cards. You might balk at the idea of taking out yet another credit card. After all, paying for a credit card balance with another card is how a lot of people tumble into debt in the first place. However, a 0% balance transfer card is a special way to deal with credit card debt relief. It’s not so much there to use as a credit card as it is to average out your pre-existing debt. You can use this for credit card debt relief by transferring over existing debt to this new card. It’s useful as a credit card debt relief strategy because of the fact that it has a 0% balance transfer fee.

You’ll be able to remove credit card debt by essentially closing out all of the other cards. Again, this can seem a little counterintuitive. But it’s a useful way of getting past the credit card companies own strategies to ensure you don’t make a high enough payment to get past their APR. The 0% balance transfer card gives you far more flexibility in how you pay back the credit card debt. However, it’s equally important to remember that this won’t Remove credit card debt in and of itself. This just makes it easier to budget your way around an existing credit card debt. The money to repay that credit card debt still needs to come from somewhere. And you might think that what you’re able to pay back every month won’t be enough.

If that’s the case than personal loans might help with this process. People often use a debt consolidation loan to help with payments. In fact, you might notice that this is an option within a credit card relief company. In general you can expect the interest rate on a loan to be lower than that of a credit card. This makes loans a solid option for paying back credit card debt. One can use it with or as an alternative to a 0% balance transfer card.

Initiating a solid negotiation with creditors

You should also consider negotiating with creditors. This too might seem counterintuitive at first. After all, credit card companies want you to keep paying them money. But at the same time credit card companies are still companies. And companies as a whole perk up when someone talks about giving them money. Negotiating interest rates for credit card debt might not have a huge success rate. But at the same time, it’s always important to try every option. And in the end it’s equally important to keep in mind that there are real people on the other end of the phone line. They may also have had to struggle with credit card debt in the past and want to help you.

Keep looking for help until the problem is solved

It’s also important to keep an eye out for other forms of help. You’ll almost certainly keep stumbling on new options when you’re actively looking for credit card debt relief. This is in large part because so many other people are also looking for credit card debt as well. You can find some great options online. For example, the services Consumer Credit Card Relief provides to help existing credit card debt. In fact, this type of credit card relief company specializes in helping people pursue every possible method of paying off credit card debt.

There are also some more drastic but effective methods to help push this process forward. For example, you might want to file for chapter 7 or 13 bankruptcy. This can have a negative impact on your credit score. But you can look at it as a short term hit which will bounce back as you pay it all off.

It’s time to take action

You should also consider an important point when considering if it’s time to start working on your credit card debt. Interest rates are a constant on your cards. And every moment you don’t work on fixing your debt is a moment when it’s becoming worse. The second you take action you’re working to stop losing money. And eventually you can reach a point to debt relief;

But it will only happens if you actually decide to start.

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