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Fast Fix It Solutions for How to Pay Credit

Many credit card debt services are available, most of which help you cope with your credit card debts and get them back under your control. Depending on your level of debt, check what kind of credit card debt services you require before you sign on for any program.

You should also know the services you’ll be getting and how much you can expect to be charged for those services. Be sure that you’re applying for the right credit card debt services for your individual situation.

Credit Counseling Services

Financial credit counseling is perhaps the simplest form of credit card debt service. Certified counselors are trained to look at your financial situation and then help you adjust your current budget. They’ll also work with you as you learn how to take control of your financial obligations responsibly.

Credit counseling could often be the perfect solution for many people because you’re not just learning how to reduce your debt properly and effectively. Still, you’re also learning valuable financial literacy that can help you avoid getting into the same financial mess again in the future.

Debt Consolidation Services

Many debt consolidation companies offer credit card debt services like consolidation loans. They aim to refinance your current credit card balances and roll them into a consolidation loan often charged at lower interest rates. Your old repayments stop, and you only have one easy repayment to think about each month that is often much lower than your old payments.

While all your credit cards have been paid out and your payments have been reduced, it’s important to look at your overall level of debt. Many people who apply for debt consolidation loans through credit card debt services find they owe more than they did after the loan is established.

This is usually because some of your old creditors may have added penalty interest or overdue fees to your balances. Still, it may also be because the company you’re working with may have also added their fees to your debt balance. While you might feel that you’re paying less each month, you may have actually increased the amount you owe. Always check how you will pay the company you’re working with.

Debt Negotiation Services

Credit card debt services exist for those clients who have made no payments on their credit cards for several months. If this sounds like you, then you might apply for a debt negotiation program.

Companies offering debt negotiation, or debt settlement, work with you to negotiate with your creditors on your behalf to get the lender to settle for a smaller amount of money as payment in full for your outstanding credit card debt balances. This works best on unsecured debts like credit cards and shows the company that you haven’t made repayments for at least a couple of months.

Most times, credit card debt services using negotiation as a tool to reduce your debt can often get your creditors to agree to accept 40-50% of the original debt amount. This can be a significant debt reduction for many people.

Credit Cards: Switch and Save

With today’s high cost of living, consumers are looking for ways to cut corners. Switching to low-interest rate credit cards is a great way for consumers to increase their buying power while saving money.

Interest Rates

If you plan on carrying a balance on your credit card – and who doesn’t get it these days – then the interest rate associated with that card becomes extremely important. The higher the rate, the more you will have to pay for using the card for your purchases.

Think about it; when you purchase a $1,200 TV using a credit card with a 24% APR, you will spend $576 in interest if you pay off that purchase over a two-year span. If you purchase that same TV with a low-interest credit card that has an APR of 11%, you will spend just $264 in the same time period. That’s a savings of $312. Now, apply that savings to all of your large and small purchases, and you can see how low-interest rates credit cards can save you money.

Balance Transfers

You can also save money with a low-interest credit card if you use it for balance transfers. A balance transfer is when you use your low rate card to pay off your high-interest rate credit cards. This can save you big money depending on the rate of the card that you are paying off. As demonstrated by the above example, cutting your APR in half can drastically cut your interest paid overtime.

Credit cards with low interest not only save you money in the long run, but they can also free up cash every month.

Minimum payments are based on a percentage of the total you owe on the card. A lower interest rate and a resulting lower balance equal lower monthly payments each month.

Pay Off Debt Faster

Low-interest credit cards make it easier and faster to pay off your credit card debt. As previously mentioned, you can use credit cards to complete balance transfers. When you transfer balances from your high rate cards, your debts will get a lower interest rate. So if you continue to pay the same amount each month that you were paying under the higher rate cards, it will pay your debts in full much faster.

For example, say you had a $1,000 balance on a 21% APR card. Minimum monthly payments for that card were $40; making just the monthly payments would mean that it would take you 7 years and 11 months to pay off the card. If you were to do a balance transfer to a low-interest credit card with an APR of 9.9% but continued making the same $40 monthly payment, you would pay off the debt in 6 years instead. That’s paying off the debt almost 2 years earlier while still saving big money.

So, what are you waiting for? Get rid of those high-interest rates and start saving!

Credit Clean Up Make a Plan for the Future

Credit clean-up can be a daunting task, especially when you do not know which direction to go. Once you have taken on paying off debt, adding excellent accounts, and disputing the incorrect information on your credit report, the time sets a plan into action for the future to avoid getting yourself into the same financial mess.

A plan can be a simple as giving yourself some ground rules around spending and money management or as intense as hiring a money manager or freezing your credit cards. You need to think about the methods it will take to get you into a habit and practice of spending smart and efficiently.

You should respect money; after all, you work hard for it, and you should enjoy life with it, within reason. Many people live above their means and often have such a hard time reeling back in after a financial crisis, but planning for the future does not mean depriving yourself of all the things you love or time out with your friends; in fact, it shouldn’t. If you deprive yourself of dieting, you are more prone to failure than learning a more healthy approach.

While you were working through your debt pay-off plan and other aspects of debt management, there should have been a period of time when you kept track of your daily spending to see where your money was going and how you could conserve and pull from that to pay off the debt. You should pull this list out now and look at it in a different light.

Before, you were living from the list, taking everything for granted, and during your pay-off time, you lived without any extras and incomplete deprivation; now is the time to find balance.

Through depravity, you should have to build a more solid sense of what is important and what is not. Do you really need to spend $7 a day on an iced mocha when you are trying to lose weight?

No way, you are sabotaging yourself and wasting money. Even if you don’t drink coffee, you understand the point. Go back through the list and star the unnecessary things and that you have learned to live without and highlight the little things you missed.

If the items you missed are still hard on your monthly budget, then look for ways to cut them down a bit. If you can’t live without a salon visit for hair and nails, instead of going once a week, go once every two weeks instead. Stylists and nail technicians all know ways to make your cut and manicure last longer. Take advantage of this and save a little money.

Now that you know what areas you can survive without and how to make your money stretch so that you live within your means, you can relax a little and continue on your journey toward a brighter financial future. With a few minor changes and self-discipline, you can start new healthy spending habits and get rid of the old.

This will round out your credit clean-up work and help you to avoid falling into the same situation in the future. Plus, wouldn’t it be great to save for that dream vacation?

Credit Clean Up: Paying Off Debt

Cleaning up your credit can seem a little daunting and overwhelming when you are first looking for a way out from under your debt. Before embarking on your journey of debt recovery, there are some things you need to know to make the process easier and more successful.

One of the key ways to cleaning up your credit is to pay off your debt. A debt pay-off-plan is the best way to start working toward a future without debt. A few steps toward forming a debt pay-off plan can make the process a good one. Those steps are as follows and should be considered when putting together your payoff plan.

Step 1: The first things you need to do are get a grasp of your debt level and face it head-on. You need to order and print them out. They can be ordered on Equifax and other credit reporting agency websites, and then you can print them out. Printing them is the best way to handle it because you can then spread everything out in front of you and get a good look at the items on there. Also, pull all your recent statements and bills and put them on the table or work surface with your credit reports. If you are more about computers, use Excel to create the following list and formulate a cell for a total at the bottom or top of the list. The list should include the creditor, creditor contact information, due date, monthly payment, interest rate, and current balance. Cross-check the information you pull from your bill pile with that from your credit reports to make sure there are no doubles and that the information is the most up-to-date as possible.

Step 2: Next, you need to highlight or star the accounts with the highest balances (top five) and the highest interest rates. These are your most detrimental accounts. These are the accounts you want to focus your extra money and attention on. Keep in mind, though, that you still need to pay the minimums on your other accounts while concentrating on the larger accounts one at a time. This will keep you from defaulting further and getting more into trouble.

Step 3: You should always attempt to negotiate and pay off companies if you have the resources. If you have access to a lump sum or have close to the balance of any of the accounts, you need to get on the phone, negotiate down the debt with them, and offer them a settlement. This can get rid of debt quickly while still saving you money. If some of your creditors are unwilling to budge on balance, ask for a lower interest rate.

These are all ways to help you find the best way to pay off your debt, and when used together, you can have the best success in forming a debt pay-off plan that you can stick with and find success with. Paying off debt is a big task, and it will take tenacity and strive to see it through to the end, but when you get there, the push and drive will be replaced by pride and relief and hopefully a renewed sense of respect for credit and the money you make.

Fast Fix It Solutions for How to Pay Credit

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Fast Fix It Solutions for How to Pay Credit

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