If you have credit card debt, then you know of the heavy burden it can put on you and your family. It can seem like a never ending task to get your bills paid every month, and the sight of your balances not getting lower can leave you discouraged. Fortunately there are steps you can take to eliminate credit card debt.
When you pay your credit card bill every month, do you only pay the minimum amount due? If so, you will likely never get out from underneath your debt. Often times, the minimum payment barely covers the interest on your debt. This means that your balance remains the same, even though you are paying them every month. Whenever possible, pay extra on your monthly bill. This will start taking down your actual debt amount until it is gone.
For anyone with good credit, a personal loan is a smart way to pay off your credit cards. If you have good credit, you will be able to secure a loan with a very low interest rate. With the money from your loan, you can pay off all of your high interest credit card bills. This will leave you with only your loan payment with its low interest rate.
If you have equity in your home, refinancing may be a good way to help you gain control of your debt. You can often get much better interest rates on a refinance mortgage, and the equity you get out can pay off your bills, allowing you to finally get ahead of your bills. In addition, the interest on home loans is tax deductible, unlike the interest on a credit card bill.
For individuals with less than stellar credit, your options are more limited, however they still exist. A debt consolidation loan may be an option if your credit payments are too high for you to keep up with. These loans will not have as good of an interest rate as a personal loan, however it will allow you to combine your debts into a single, often lower, monthly payment. This will free up extra income every month, relieving some of the financial burden you may be under.
Debt settlement is another option. When you obtain a debt settlement, your creditor agrees to take an amount less than you owe in order to close the account and settle the debt. This sounds great, however it should be a last option because of the serious repercussions. A debt settlement will have a major negative impact on your credit rating. However if your options are bankruptcy or settlement, you will be able to recover from a debt settlement much faster.
If you are mired in debt, there is hope. When you are aware of your options, you can begin to forge a path to financial freedom. Once you have control of your finances, you will feel a sense of relief that only a debt free individual can know.