7 Ways To Eliminate Credit Card Debt

7 Ways To Eliminate Credit Card Debt

Debt tends to be something that many people get into very easily, so they eventually look for a good debt solution to relieve the monetary stress they have caused for themselves. Unfortunately, credit card debt is much easier to get into than out of since getting into debt usually means spending money we dont have and getting out of debt means spending the money we do have. Obviously, the money we do have will not be as plentiful as the money we never had to begin with, so a debt solution must be implemented. You may find a a few simple strategies suitable to you in the list below:

1. A self-repayment debt solution means you are not going to incorporate any kind of debt management service. This debt solution requires that you will form your own budget and do the repayment yourself without incurring any new debt.

2. Credit counseling is a debt solution that many people use. What this does is they work out a settlement with your creditors in which the credit counseling service will mesh all of your payments into one payment and they will distribute the agreed upon amount to your creditors.

3. A debt consolidation loan tends to be a good debt solution to consolidate a large amount of debts into one payment.

4. Debt settlement is where you or someone you have designated negotiates a lower balance with your creditors to allow for an easier pay off.

5. Believe it or not transferring balances to your credit card with the lowest interest rate is a good debt relief option. After investigating interest rates, you can consolidate all of your debts into one credit card account so that you can have one monthly payment. Credit card balance transfers will also give you an interest free period for an extended period of time to help with reducing the credit debt.

6. A home equity loan is also a good debt solution because of the ability for you to borrow against the value of your home. You can then pay all of your debts off with the money received and only have to deal with the repayment of the home equity loan.

7. The last and avoid at all costs debt solution is bankruptcy. This debt solution can result in you not being able to acquire any new credit for ten years. Even after the ten year period is up, you then have to rebuild your credit. True that Bob and Jill may have used this debt solution and acquired a new car within six months of filing bankruptcy, but the interest rate can be as high as 20% and those opportunities are few and far between.

So when looking for a viable financial solution to eliminate credit card debt , review your options. You can calculate how long it will take to pay off the debt using an online debt repayment calculator. Some make the mistake of going straight for bankruptcy when they feel over their head.

Fortunately, with the stricter rules in place when filing bankruptcy, some factors may prevent a person who can afford a better debt solution from making that mistake. Just remember that there are there are many debt solutions, so investigate and educate yourself on what you can do.