Two simple debt strategies
With the cost of living increasing day by day, many of us turn to credit cards in order to pay our everyday bills. It is therefore not surprising that credit card debt has become an American epidemic, with people often losing their houses or having to take second jobs to pay off their credit card debt and just to make ends meet.
If you are one of the people who are paying off their credit card bills very slowly or perhaps you’re even missing payments, don’t worry there are solutions for you out there. This website aims at helping people in debt to get out and become debt free.
Here are three simple debt strategies you should be aware of when paying off your credit card.
Debt solution 1 – Consolidate all your loans into one manageable monthly repayment
Debt consolidation is when you put all your loans into one manageable loan. For example, you will find a lender who will pay off your debt for you. Perhaps you have become behind with your mortgage repayments, or your auto payments and of course your credit card bills.
Let’s say you are $1000, the lender will give you $1000 fee to pay off your current debt. You will agree an annual interest rate between the two of you and therefore you only pay the new lender each and every month, as opposed to paying different creditors each and every month.
Now as long as the lender offers you an interest rate lower than what you are currently paying, this makes perfect sense and you should go for it. You will certainly save money in the short and long-term.
Debt solution 2 – Not-For-Profit Debt Management Agency
This is a fantastic solution which not many people are aware of. A debt management program gives you advice, can help you manage your finances and of course help you pay off your credit card debt.
In most circumstances you will discuss your financial situation with your dedicated agent and they will ask you some questions to make sure that you qualify for their assistance.
You will tell them the credit card companies and other lenders where you are paying off a monthly fee, and in most cases they will contact these credit card companies and renegotiate a new fee for you. In some cases, they can even renegotiate the amount you actually owe.
As soon as you have been approved, you will send a monthly check online transfer to the debt management agency who will then pay off your creditors accordingly.
Look around for a not-for-profit debt management agency has been accredited, and you will in most cases not have to pay the service.