Smart Ways to Get Out of Your Credit Card Debt
Paying is never easier with a credit card in your wallet; all it takes is to shop and swipe. But this sweet advantage has its bitterness. People usually lose control of how to use a credit card wisely, leading to a drastic increase in what they owe. In this article, we'll list down the best ways to find a way out of your credit card debt and get your financial freedom.
Your debt might hold you back from doing the things you seek to achieve in your life, it's more like a lifetime commitment, and with poor financial management, your struggle with your financial problems can get more complicated. All of this is a sign that you need to consider making some drastic changes.
Here are what strategies you can count on to help you pay off your debt and manage your financial resources more wisely:
Keep an eye on your finances and set serious goals
When people usually take a debt, they get excited to spend more on what they need easily without counting their dollars and get overwhelmed with the limited resources. However, you need to follow wise financial habits to help you make your payments on time and keep everything on the right track.
Making an annual study of your spending and budget adjustments can greatly positively affect your financial situation. Also, you can try to plan ahead, set goals that you can stick to, such as depositing a small amount of money every month on a saving account, or try to save a down payment of your monthly earning to have more flexible options when you want to make any future purchases.
You can build a budget by just listing down your income, seeing if you spend more money than you make, and finding out how much money you have dedicated for emergencies. Try to find out if you can spend less and save more, see what marginal things you pay for and try to avoid unnecessary spending.
Pay more when it is possible
When you find that you have some extra money, pay more than the minimum amount of your credit card debt, it's a good way to pay off what you owe in a shorter period of time. Besides taking the burden off your shoulders sooner, paying your credit card debt in a shorter time gives you a chance to rebuild your credit card score faster.
More than one credit card? Pay for the highest interest first!
If you have more than one credit card to pay for, it's better to start paying for the debt with the highest interest rate first so that you can pay less by shortening the debt term allowing you to focus on your other debts with a lower interest rate.
Debt Consolidation loan
More than one credit card to pay for every month sounds like a troubling situation, especially that every credit card debt has its interest rate, which leaves you paying more than you can actually afford. Having more than one credit card debt at the same time will probably harm your credit score. Still, if you don't fall behind when it comes to making your payments on time and have a good credit history, you might qualify for a personal loan, which you can use to pay off all your credit card debts and make an only monthly payment with a reasonable APR rate.
Not many borrowers prefer this option, but if the debt balance is high, it might be the most suitable financial option for this purpose. When you choose to settle your credit card debt, a debt relief company can negotiate with your creditor to bring you a reduced debt balance or interest rate.
You might be wondering why can't you negotiate your own debt; actually, you can for sure negotiate with the creditor. Still, it's probably better to let an expert negotiate on your behalf since they are experienced and know how to find the best settlement.
If you choose this option, you must be aware of the negative impact it leaves on your credit score. For example, with some debt settlement cases, the credit score loses about 100 points; that's why you might want to discuss all the details before you choose a debt relief solution.
When there are no other options, this solution can take you out of trouble. But when do borrowers go to this last strategy? It's when they are unable to pay their debts, even for a reduced amount or lower interest rate. How does it work? Bankruptcy wipes your debt clean, and you'll no longer need to pay for creditors.
However, people try not to reach this point since bankruptcy has its downsides when it comes to the credit score, it rapidly decreases your credit score, and the bankruptcy will remain in your credit report for 7 years.
The vast majority of debt relief companies offer to settle your credit card debt, but what makes a difference is the fees and how advantageous the settlement is, besides other factors such as the minimum debt amount and the timeframe to pay off your debt.
In serveral.com, we reviewed more than 20 different debt relief companies, their fees, services, and features, and here are the best debt relief services that you can count on:
New Era Debt Solutions has been a BBB A+ accredited debt relief company since 2001, offering very flexible debt relief options and no minimum debt amount required. Clients can save between 36% and 40% after deducting fees. But why are we so optimistic about it?
Here is what makes New Era Debt Solutions on our list:
- New Era Debt Solutions makes sure to reduce your total debt balance and interest rate to relieve its clients and give them a chance to pay off their debts at their convenience.
- Monthly payments are relatively low compared to other debt relief services.
- New Era Debt Solutions has been a BBB A+ accredited business since 2001.
- It offers multiple debt-relief options, including debt consolidation and debt management programs.
- A free consultation is available before you take any serious steps; you'll have the chance to discuss your debt relief options and weigh your options.
The next on our list is National debt Relief company, and it has much to offer and a handful of financial solutions to get rid of your debt. We'll first head to its best features, starting with its money-back guarantee, which is hard to find with many other debt relief companies, besides its BBB A+ rating and free consultation.
In a nutshell, National Debt Relief offers you:
- Free consultation to know your financial odds upfront.
- No upfront fees until the company negotiates with your creditors.
- 50% elimination of your debt.
- Money-back guarantee.
- Solutions for multiple types of loans, including private students loans, back rent, business debt, credit card debt, unpaid medical bills, and payday loans.
Freedom Debt Relief allows you to track your settlement progress and keeps you updated with any changes. It offers solutions for different types of loans, including credit card debts, medical bills, and private students loans.
Here are the top perks:
- Settles different types of loans.
You can break free of your debts in 24 months.
Keeps clients updated with all changes.
Has great customer support staff.
Credit card debt amount can get very high and puts much pressure on the debtor; that's why they usually seek to find financial solutions to get out of the debt. There are many strategies that you can try to find a way out of your debt. However, making these strategies effective requires commitment and constant planning.