The quickest way out of credit card debt is to dramatically cut your interest rates. There is no other factor that matters as much as the rate in which your finance charges are compounded. So how do you eliminate credit card debt? Here’s how.
Self-Guided Strategies
You can get lower interest rates on your own, if you have the discipline and financial flexibility to accomplish your goals. Reducing your budget can give you extra money to send in on your credit card payments.
Extra credit card payments can give you leverage to request lower interest rates. The faster you start paying down your balance, the more likely your creditors will approve your requests for lower rates.
Just call and ask. Cite your strong financial status and lower rate offers. There are clear strategies to making this work for you.
Debt consolidation loans may also be used. However, you must have job stability and excellent credit in order to benefit. Most people in debt experience a lower credit score.
Get Help
If your credit score is not outstanding, then you might wish to speak with a credit counselor for help. They are trained to help you develop strategies that allow you to speed up your debt payoff on your own.
Most people believe that credit counselors only sell debt management plans. While it is true that some for-profit debt management companies do just sell these plans, reputable credit counseling organizations will not push any one plan.
Credit counselors are experts on how transaction trends can affect your credit. Let them show you how your good habits help and bad habits hurt your debt repayment goals.
To find a reputable agency, visit the BBB or find a nonprofit organization serving you. Make sure you are comfortable with your counselor. You can get help today.
Tags: quickest way out of debt
Contact your lenders and advise that you may have no alternative but to file bankruptcy, work out a no interest payment plan, choose a debt free plan and apply accordingly.
Dear InlineBusiness:
Thank you for your comment. This again is a great strategy for dealing with one or two creditors. A self-directed approach will likely help.
If you have multiple creditors, it may be difficult to gain arrangements with the majority of your creditors unless you prove your commitment by enrolling in a debt management program.
An experienced credit counselor can help you identify options and give you the information you need to make the most of your situation.