American citizens collectively owe more than 400 billion dollars in credit card debt! Credit card owners try to become debt-free, but the ever-increasing interest rates prevent them from making it out of this quicksand of a situation!
Read our blog to understand how you can become debt-free in 2021 and start your life afresh!
Practice the Snowball Method
We aren’t suggesting you go out and practice your snowball throwing skills. Instead, you can use this snowball method to tackle credit card or any other debt. The snowball method suggests that debtors begin by assessing the total amount of the debt that’s payable. After you’re done with this assessment, you should target the smallest amount of payable debt and pay it off first.
Even if you pay off the smallest amount of debt, a sense of accomplishment will prevail. This will motivate you to keep going and tackle all of your debt through this method.
Pay More and on Time
Why pay more when you can pay less in debt repayments and use the extra cash in buying unnecessary goods?
Sure, your capital remains the same, but it’s the interest rate that adds up to your debt and makes your life miserable. Making timely and extra payments will prevent your debt from collecting interest.
Have you made some money through your side-hustle? Pay it towards your credit card debt. Were tax returns reimbursed to you? Make that extra payment! You can always sit and watch your debt grow. However, making additional payments can help you become debt-free fast.
Seek the help of a Credit Counselor
A credit counselor is a trained professional who can look into your finances and debts and help you come up with a debt management plan. The credit counselor will analyze your budget, income, and debts and then advise you on making the right move.
Moreover, a credit counseling agency can work with your creditors and help lower your interest rates. And, as we know, reduced interest rates are directly proportional to lesser debt in payment!
Consider Debt Consolidation
Debt consolidation requires you to take your small snowballs, consolidate them into a large snowman, and then take it out in one go!
Debt consolidation is a tool utilized in debt refinancing. This method is based on the concept of combining all of your existing debts—big and small and consolidating them into one large debt. This debt is then paid off by taking out a new loan from a new lender with favorable pay-off terms. Experts suggest that you avail a loan with lower interest rates, fixed rates, and short repayment periods.
Availing the services of a credit counselor or a credit repair specialist can bring you back from reaching the brink of bankruptcy. Contact our apt credit repair specialists at 007 Credit Agent to look into a few more credit card debt solutions.
Contact our credit repair specialist to get an in-depth debt evaluation done today!