Steps to Pay Off Credit Card Debt
- Closely analyze your current financial situation
- Negotiate a lower interest rate
- Stash your plastic
- Work on one credit card debt at a time
- Transfer your balance
- Set up a budget
- Choose a Debt Payment Strategy
- Seek help (if necessary)
- Make more minimum payments as you can
- Track your progress and motivate yourself
- Stop the cycle
Credit card debt is one of the most common types of debt, according to finance experts. There are many reasons why people end up with massive debt on their credit card. Most of it is due to financial irresponsibility. In some circumstances, it is a case of trying to get by as most people rely on their card to make ends meet. However, it is only a matter of time until that debt snowballs and becomes difficult (if not impossible) to manage. Regardless of the reason for getting into credit card debt, the next area of focus should be towards paying off debt.
Since a lot of credit reporting agencies use credit card as one of the basis for evaluating your credit worthiness, it is important to slowly chip away your debt.
How Bad is the Credit Card Debt Problem?
According to a report issued by the Federal Reserve, the total credit card debt in the US alone has exceeded $1 trillion (that was previously set in 2017). This would be the highest ever recorded amount of credit card debt in history. Given the fact that credit card debt problem is widely known, you would think that consumers would become aware to use their plastic less. Apparently, that isn’t the case as spending with the use of credit card has only intensified within the last year.
Below are some of the compelling statistics that you need to know about credit card debt (in the US – to give you a solid picture of this problem):
- About 43% of Americans have a credit card balance that is at least 2 years old.
- The average credit card debt amount per household in the US is $16,883.
- The average annual interest payments made per household in the US is $1,292.
- About 42% of those with credit card debt cited “making ends meet” as the number one reason for credit card spending. The rest are car repairs (29%), medical bills (27%), dining out (22%), and clothes shopping (22%).
By identifying the problem, you can take the necessary first step in paying off credit card debt. In the next section, you will learn more in detail how to pay off credit card debt using strategic and effective methods.
How to Get Rid of Credit Card Debt
As with any debt problem, an awareness that such problem exist is a crucial first step in order to fix the problem. Once you acknowledge that you have to do something to reverse your debt, you will be able to map out a plan on the best way to pay off credit card debt. It is never a good idea to simply ignore the problem. Refusing to read your credit card statements won’t see that credit problem go away soon.
If you are not sure on how to go about the process, you will find a detailed step-by-step guide below. Simply follow the process so you can gradually chip away the debt until you become debt-free. Do not stress yourself over how to pay off debt quickly. Instead, focus on paying off as much as you can from that debt so you can save on the interest fees.
1. Closely analyze your current financial situation
This is a good tip to remember when you are dealing with any debt, not just credit card debt. It is important to know where you stand. It is important to pinpoint exactly how much debt you owe. Some people like to put a certain amount, such as say they owe $10,000 in credit card debt. In reality, they actually have $15,000 to $20,000! That $5,000 is considerable and you should never take it lightly. No matter how grave your credit card debt might seem, it is important that you determine exactly how much you need to pay off.
Once you determine how much debt you owe, it is also important to look at the bigger picture – your overall financial situation. You need to write down a list of everything you owe – from the smallest expenditures to the biggest amount. Do not omit any expenditure from that list – make sure you include everything, most especially your debts. The next thing you need to do is to compute your debts and expenses versus your income. This will give you a fair idea on how much money you can pay towards your debt each month. By identifying your basic expenses such as food/grocery, gas, rent or mortgage, you can allot a certain amount off your monthly income for those. The rest, you can allocate towards paying off debt and other types of loans.
2. Negotiate a lower interest rate
This is another trick that finance experts recommend when it comes to making your credit card debt easier to manage. This is not guaranteed to work all the time; however, it is worth the shot. If you are able to shave off even just a few percentages less from your card’s original interest rate, it can mean savings of up to hundreds per month. If you add that over time, this could mean thousands in interest savings a year!
A polite request is therefore worth the chance when you want to know how to pay off credit card debt. You can do this through a phone call with your credit card company. You can also write them a formal letter detailing your request. Most credit card companies will check your credit score as a basis for approving your request. However, there are also other factors that they might consider. Therefore, it never hurts to give it a shot.
If you own more than one credit card, do this for every credit card company. Most of them would be willing to renegotiate a lower interest rate in exchange for the promise of paying off your debt.
3. Stash your plastic
When you have major credit card debt, you need to stop the bleeding. Meaning, you need to stash your plastic somewhere and stop using it. It won’t help if you are paying $300 a month of minimum payments and then adding $100 of credit to that each month. Do not bring your cards with you and pay only with cash for your purchases. In fact, credit experts recommend that you do not use your cards altogether.
4. Work on one credit card debt at a time (if you have multiple cards)
If you have multiple credit cards and have accumulated debt on each of them, paying off debt can easily overwhelm you. The best thing you can do is to focus on one debt at a time. This is a smarter way to get out of debt rather than spread out payments on each of your cards. While you make lump sum payments on one of the credit cards, make sure you continue to make minimum payments on the others. This will help to maintain good standing on your accounts while you are trying to pay off one at a time.
But how do you determine which card to pay off first? Is it the high-interest card or the ones with lowest balance first? If you want to save on the interest fees (versus wanting to pay off your debts quickly), then your priority should be the credit cards with the highest interest rate. You can save a lot of money in the long run from the finance charges placed on that particular card (especially when those cards are associated with higher balances, too). If necessary, write down a list of your credit cards. Rank them from the highest interest rate to the lowest. It would also be good to indicate the outstanding balance for each. Once you pay off the first one on the list with the highest interest rate, you can work your way down that list. Do this for the next until you have paid off all the credit card debts.
If your priority is on how to pay off debt quickly, you should start with credit cards with low balances. Since they have a low balance, the payment period will be relatively shorter. When you are able to pay off one card, you can “feel” like you are making progress. When you see progress, you will become more motivated to knock out the rest of your credit card debt. You can use whatever extra money you earn towards paying off that credit card debt, such as when you get bonus or commissions at work.
5. Transfer your balance
Another technique for paying off credit card debt that experts suggest is to transfer your balances. For example, you have a high-interest credit card and you have another with a much lower interest rate. You have the option to transfer your existing balance from the high-interest card to the other account with a lower interest.
However, credit card experts would warn that you should be cautious when you make that transfer of balance. Most credit card companies only offer a low-interest-rate for a specific window of time as part of an introductory offer. If you make that transfer of balance, you have to commit to paying off your credit card debt within that time frame. Most credit card companies allow anywhere from 12 to 18 months. This should give you adequate time to put money towards paying off that debt with the low interest. If you cannot do this, you could end up with skyrocketing interest rates that are potentially higher than the original credit card you own.
It is also important to take note about the balance-transfer fee (around 3-4% of the amount transferred). Make sure you factor in that extra cost, too.
6. Set up a budget
Once you have committed to clear your credit card debt, you must create a budget (if you do not have one yet). A budget is important so you know exactly where your finances go. You will be able to identify your expenditures down to the last detail. This will enable you to ax some expenses that are not necessarily important and use that to pay off credit card debt.
Be realistic when making a budget. You need to make some sacrifices too. For example, if you used to go out to eat three times a week, you can cut that down to once a week. The savings you can make for those two meals at a restaurant can be put towards debt payment instead. Or, you can bike instead of drive when you buy something from a nearby grocer. The savings you make on gas can be added towards your debt payment, or for your other expenses at home. You do not need to make dramatic lifestyle changes in order to pay off your debt. However, you need to be more aware on how you spend your money in order to make significant savings. When you plan on doing any purchases, check back on your budget. If it is not listed as a priority, you can skip that purchase. Adhering to your budget is crucial if you want to free up money in order to prioritize debt payments.
7. Choose a Debt Payment Strategy
There are so many strategies that can be used for paying off credit card debt. Before you choose one, it is important to sit down and take full consideration about the pros and cons of each. There are currently three strategies available for debt elimination: 1) avalanche method, 2) snowball method, and the 3) blizzard method.
The first method – Avalanche Method – gets its name because experts believe this is one of the best approaches to erase debt quickly. Some would consider it the most efficient approach, too. This method involves paying off the credit card debt with the highest interest rates. For the rest of your cards, you must make minimum monthly payments. For the card with the highest APR, make it a point to pay as much as you can afford each month. Repeat this process until you are able to pay it off. When you aggressively make payments on high interest cards, you can save up to thousands of dollars in the long run. This is why experts recommend you put them as high priority if you decide to pay off your debt.
The second method is the Snowball Method. This is a reversal of the Avalanche Method. Instead of paying off the card with the highest interest rate, you will be working on the credit card with the smallest balance first. You will still be making minimum payments on your other cards, but you put more towards paying off the card with the smallest balance. The idea is to make it easier to eliminate debt so you can build up confidence. The more cards you can pay off in a short amount of time, the more it will reinforce positive repayment habits. This will make you feel more motivated to conquer your remaining debts.
Finally, there is the Blizzard Method. This is a combination of the above two methods of debt elimination. Essentially, you will be putting extra money towards the payment of the card with the highest interest rate and the smallest balance. Your goal is to target both types of accounts so you can eliminate them both. It will require aggressive planning on your end and lots of discipline to make sure that you can manage your debt (while still making minimum payments on the rest of your cards).
Still not sure which is the right approach for debt elimination? You might want to consider the next tip so you can be on the right path towards eliminating your credit card debt.
8. Seek help (if necessary)
As mentioned earlier, there are three common strategies on how to pay off debt fast. You can choose from any of the above methods that would suit your current financial situation and the extent of your debt problem.
But if you’re still feeling overwhelmed, do not be afraid to ask for professional help. There are various kinds of professionals that can help you out. From financial advisors, to credit counselors, and so much more – these experts can help organize your plan so you can be on the right financial track. They can even refer you to other help resources to expand your knowledge on money and help gain control over your finances.
9. Make more minimum payments as you can
Making minimum monthly payments on your credit card debt is not going to help pay it off. In fact, most of your minimum monthly payments are allocated towards finance charges and does not really do much in terms of eliminating your debt. Make it a habit to pay more than the stated minimum payment on your credit card statement.
If you’re really strapped in cash, at least aim to make two minimum payments each month to make a significant dent on your credit card debt. Your credit card company computes the interest on your debt based on average daily balance. Put payment towards your credit card as often as you are able to. This will help reduce your principal balance and the total interests that you would have to pay. Ideally, you should make payments once every two weeks. For the first payment, try to pay the minimum required amount. For your next payment, put in as much as you can afford. If you do this regularly, you will see a significant improvement in your overall balance.
10. Track your progress and motivate yourself
It is important to keep track of your progress: this is one of the most important tips to pay off debt. This will enable you to keep track of which repayment methods are most efficient. At the same time, seeing the progress you’ve made will further motivate you to keep going. Revisit your progress every few months.
However, you do not need to fret over your credit card debt on a daily basis. Put reminders on your calendar or on your phone when it is time to make your payments. This will help ensure you won’t skip any payment schedule. Don’t get frustrated if you haven’t been able to pay off your debt in full over a given period of time. It took some time to get you into debt; it will also take time to get you out of debt. As long as you follow your scheduled payments, there is no need to keep beating yourself up.
11. Stop the cycle
This is the most important tip of all: improve your financial habits. Put an end to the cycle of acquiring more debt. Once you have decided to pay off credit card debt, work on improving your finances. It starts by not acquiring any new debt. A lot of people fall into this trap once they manage to pay off their previous debts. They wrongly assume that they are ready to take on new debt. Do not bring yourself back into that cycle.
You can also use this as an opportunity to look at your financial habits before and after your debt problem. This will enable you analyze what changes you made that helped you become debt-free. Follow that new financial path that you have carved for yourself instead of going back to the old one.
What is the Fastest Way to Get Out of Credit Card Debt?
I’ll tell you right off the bat – what I will present here will not necessary relieve you of all your financial obligations. Using money you don’t have always meant paying it back and more in interests. Your next best option, then, is to make sure that you accrue the least amount in interest payments as possible. Unless you happen to earn a lot of cash in a short amount of time, your best move is enrolling in other loans.
Of course, if you can manage your credit card debts by simply following the tips listed above, I strongly advise that you skip this entire section altogether. There will always be risked involved with loans, especially with unsecured ones. However, if you think that it is time to explore your other options, getting a low-interest loan may just be your key to reclaiming your financial freedom.
Four Types of Loans You Can Get to Get Rid of Your Credit Card Debt
Again, it must be emphasized that this would only work if the interest rate on the loan you are going to get is lower than those in your existing credit cards. Each option comes with its own share of risks and benefits, and I highly advise you to take a hard look at your financial situation to determine the one(s) most fitting in your case.
- 401 (k) Loan
Although it is not recommended, you can take out a 401 (k) loan to pay your credit card debt. In fact, 20% of Americans have an existing loan on their 401 (k) due to its accessibility and low interest rate. Unless truly necessary, you should look into your other options because by taking out on your retirement fund, you miss on opportunities for growth. If not managed properly, you can end up with a very small amount once you retire. Keep in mind that there also is an early withdrawal fee when you’re below 60 years old.
Should you default, your loan balance would be considered taxable. You may also be barred from lending from it in the future. So unless you are very sure that you would be able to pay the balance right away, I recommend against it.
- Personal Loan
One of the more popular ways of consolidating your debts on your own is through a personal loan. If you feel that you can manage your finances on your own and that you do not need a third party to mediate the transaction, this is a great option. Interest rates here vary depending on credit score but are generally higher compared to secured loans like HELOC.
Unfortunately, this option will not be available to a lot of people. Lenders require high credit scores when applying for a personal loan because there is no collateral, meaning you they won’t get anything should you default on the loan. If you have a less-than-stellar rating, you can find a cosigner who normally qualifies for this type of loan.
- Home Equity Loan/ Home Equity Line of Credit (HEL/HELOC)
Home Equity Loan and Home Equity Line of Credit are very similar types of loans as they both draw a portion of the current market value of your home as collateral. However, they differ in two aspects: in loan term and in what will accrue interest. HEL is a long-term loan where you are given the lump sum for you to utilize in whatever way you see fit. Whether you use the full amount or not, you will still pay interest for the entire amount loaned to you. On the other hand, you have to renew HELOC every year (or whenever is stipulated in the contract) and pay a certain amount to get access to the funds. Unlike HEL, you would only pay interest on the amount you use.
Both HEL and HELOC are most beneficial when the real estate market is up because it means getting access to a bigger amount. There will always be a risk of losing your collateral should you default on the loan, but interest rates are usually lower, making it easier for you to pay it back.
- Debt Consolidation Loan
From the term itself, debt consolidation consolidates all your debts into a larger loan. This works best if you are juggling several high-interest credit card debts because you would only need to worry about one payment deadline instead of many and you get to enjoy lower interest rate. Here, a mediator or the company negotiates with your creditors on your behalf. They basically take care of everything, and you pay a fixed amount per month until the amount set by the credit card debt consolidation company is paid.
If you have already hit your card limit, consolidating your debts will free this up. However, this should not be seen as an opportunity to use that free credit. Debt consolidation only transfers the balance and not relinquish you from your financial responsibilities. If not used correctly, you might end up maxing you cards and find yourself in a worse situation than you were in before.
Benefits of Taking Out a Loan to Pay off Your Credit Cards
For certain types of loans, it can be very beneficial for you to apply in order pay off your existing credit card debts. Getting a loan is not necessarily a bad thing if it is well-thought and planned and if it will help you get out of whatever financial rut you may be in. There are three ways that getting a loan can actually help you get out your credit card debts:
- You save on interest payments
The problem with credit card debt is even if you make the minimum payments, it will hardly dent your debt problem. Because you are paying such a big amount in interests, only a small portion or in worse cases, no part of your payment will go to the principal amount.
A low-interest loan gives you the financial capacity to pay your high-interest credit card debts (both the interest payment and the principal amount) right away. In exchange, you will pay a smaller amount in interests.
- You make payments more manageable
Knowing that your debt will not continue to increase at an alarming rate does take a lot of load off your mind. Aside from that, it also allows you more freedom on how you are going to handle your finances because your payments would not eat as big a chunk of your budget as it used to. This means you would not be forced to charge bills to your credit card when you’re a little short in cash.
With discipline, you would able to make timely and consistent payments on your debt obligations while also making noticeable progress financially.
- You get out of debt quicker
The biggest problem with credit card debt is it is so hard to get out of it, the reason I only recommend its usage in place of cash or for a real emergency. So, even if you change your spending habits, interest payments continue to accrue even up to the point that making minimum monthly payments don’t make a dent on your remaining balance anymore.
Taking out a loan to pay off your credit card bills remedies this situation. For as long as you do not use your plastic for purchases you know you cannot afford, you would be able to free yourself from credit card debt quicker. This kind of freedom lets you start anew and have a fresh start.
How to Maximize Your Credit Score Increase with Debt Payment
Contrary to popular belief, paying off your debts does not necessarily increase your credit rating. In fact, many Americans have experienced the opposite – after paying off a credit card, their score decreased.
Why can credit scores decrease even after paying your debt?
To understand why there is a decrease in your score, you only have to look at how it is determined:
- Payment History
Your payment history tells creditors how you handled debts in the past. Some information that can cause a drop on your score include bankruptcy, foreclosures, repossessions, and even late payments. That is why your score will definitely take a hit if you are always late with your payments.
- Credit Utilization Rate
Credit utilization rate is the ratio of the amount you borrowed and your credit limit. Essentially, the lower the credit utilization rate – the smaller the amount you put on credit vs your limit– the better. In fact, according to FICO, the people with the highest credit scores only use 7% of their credit limit.
So even if you max out a credit card and pay it back in the same month, your credit report would still reflect a poor credit utilization rate.
- Length of Credit History
In length of credit history, both the average age of accounts as well as the age of the oldest account matter. As your accounts age, the better an impact it has on your credit score. You can’t do anything about this, but with right financial management, you will see an improvement in this area.
- Types of Credit Used
Having more diversified types of credit in your history is usually seen more favorably compared to just a few. However, as this is not as big a factor compared to the first three, you should not open different types of account in an attempt to raise your score.
- Recent Hard Credit Inquiries
When done in great numbers, applying for a credit card or a loan can hurt your credit score. Fortunately, rate shopping over a short period is only considered as one so it will not affect your score by much.
Most of the time, payment history, credit utilization rate, and length of credit history are the culprits behind decreasing credit score even after you paid off your debt. If you want to avoid such situation and enjoy the maximum credit score increase that comes with paying off your debts, keep these habits in mind:
- Always pay on time
Especially with a busy schedule or with managing different payment deadlines, one of the most difficult things to do is not even finding the money to pay your bills. It becomes remembering to pay them on or before the deadline. While it is not the only contributing factor in determining your credit rating, it remains to be the biggest one.
That is why you should always pay on time. Not only does it save you from interest payments, it also helps raise your score. While companies have different deadlines, they don’t change it every month. This means you only have to create a schedule and stick to it.
- Don’t say goodbye to your plastic just yet
Keep your credit cards open even after you have already paid off your debt unless you have a good reason for closing them like poor customer service or high annual fees. Closing them would lower your total credit limit and can drastically increase your credit utilization rate. At the same time, your average account age would decrease.
- Don’t overuse your credit card
Going cashless might not be a viable option right now because of using your cards to the limit will greatly increase your credit utilization rate. However, you should still use your credit cards for small purchases every month to prevent deactivation due to inactivity.
- Check your credit report for errors
Maybe it’s not all you. It is not unheard of for the credit bureaus to commit mistakes and for people to spot errors in their credit reports. Should you see them, make sure to dispute them immediately. While it is just a case of file mix-up most of the time, it can also be a sign of identity theft. All your efforts to better your credit can mean nothing if there are inaccurate information on your report that can hurt your credit score.
Importance of Paying Off Debt
When you accumulate debt on your credit card, it can put you in a precarious financial situation. Would you rather save up your money or use it to pay off debt? This is one of the biggest questions that most people face when it comes to finances. Simple math suggests that paying off debt should be given priority over saving for retirement, or adding to your emergency fund. Don’t get this wrong – it is highly important that you have an emergency fund, or that you plan for your retirement (even at an early age). But when there is debt involved, you should make it a priority to pay that off.
If the amount of interest you are paying is higher than what you earn from your savings, then it is only logical to eliminate the interest that you are paying first. This is especially true when you are dealing with high-interest credit card accounts. The ability to pay that down can solve any ongoing and future problems when it comes to managing your money.
If you are on the process of building your emergency fund, it is also a good idea to prioritize saving. However, this is only applicable if you are not dealing with a high-interest debt. Focus on building an adequate emergency fund to fall back on. Once you reach your target, you should aggressively work towards paying off credit card debt. Once you live debt-free, you can experience financial freedom and be able to do more with your money.
If you’re looking to pay off a large amount of credit card debt, it can be a difficult process. If you’re struggling to pay off your credit card debt, you might have some questions. In this section of our site, we take a look at some of the most commonly asked questions regarding paying off credit card debt. We’ll also look at some other debt payment questions we receive. Check it out!
Credit Card Debt Payment Advice
If you have questions about credit card payment advice, this is where you should be looking. Chances are that you’ll find what you’re looking for in the section below!
Is it better to pay off debt or save money?
What is the best way to pay off credit cards fast?
You should start budgeting and consider the best debt consolidation loans. If you can consolidate the debt at a lower interest rate, you should have a better chance of escaping the debt faster. High interest can keep you locked in a debt cycle.
Is it better to get a loan to pay off debt?
If you can get a loan that is significantly cheaper than your current debt, it can be a great way to pay off debt. For example, if you use a loan with a low interest rate to pay off a high interest rate card, it’s a good way to reduce the overall cost of your debt. It can also help you escape debt quicker. Learn more about getting a debt consolidation loan vs personal loan.
Which debts should I pay off first?
How can I save money and pay off debt fast?
How do I pay off debt if I live paycheck to paycheck?
How can I get rid of credit card debt without hurting my credit?
Is it better to pay off a credit card in full?
Is it smart to get a loan to pay off credit cards?
This depends on the interest rate that you’re offered. If the interest rate is lower than your current debt’s interest rate, this is a good option for paying off your debt. Take a look at debt consolidation loans USAA offers.
How should you pay off multiple credit cards?
How long does it take for your credit score to go up after paying off a credit card?
How can I pay off debt quickly and save money?
What debt to pay off first to raise credit score?
What happens if you don't pay credit card debt?
How to pay off 20,000 in credit card debt?
This will depend on your financial circumstances. You should start to budget, pay large payments, and consider debt consolidation. You could also take a look at a debt consolidation loan Chase offers.
How to pay off 30,000 in credit card debt?
Again, this is dependent on personal financial circumstances. You should begin by paying off current debt at the highest rates first. Also, start to budget and make as large of payments as you possible can. Debt consolidation is always an additional option. Read more: Debt consolidation or bankruptcy which is better?
How much do collection agencies pay for debt?
Should I pay off debt before buying a house?
Is it smart to use 401k to pay off debt?
How to pay off old debt in collections?
Do you have to pay a debt after 7 years?
Other Credit Card Debt (and Other Debt) FAQ
If the above questions didn’t help you find the answers you need, hopefully the section below will be of a bit more assistance. Check out our other popular questions!
How can I make extra money to pay off debt?
What are the disadvantages of consolidation?
If you have a lower interest rate, there aren’t many disadvantages of consolidation. The only downside tends to be that your credit score takes a short-term hit for taking out a new loan. But this is typically not very significant. Be sure to double check reviews and references when a company says they can offer guaranteed debt consolidation loans bad credit options.
How can I get out of debt with bad credit?
If you have bad credit, you’ll need to try and find a way to save money and make large payments on your debt. Alternatively, you can still look for debt consolidation or settlement options. Keep in mind, settlement may damage your credit even more. Read more about how to consolidate debt with bad credit.
Can paying off collections raise your credit score?
How can I raise my credit score in 30 days?
How effective are snowball debts?
How to get out of paying credit card debt?
How to pay off debt on credit report?
Can you pay your debt with your birth certificate?
Should I stop contributing to 401k to pay off debt?
How to pay off medical debt?
Should I sell investments to pay off debt?
Should I sell my rental property to pay off debt?
Does life insurance have to pay debt?
How to get out of student loan debt without paying?
What is the legally bound obligation to pay debts called?
Do you have to pay debt collectors?
Who is responsible to pay back all debts?
How to get out of credit card debt without paying?
It’s hard to get out of credit card debt without paying. If you refuse to pay, it will damage your credit score and the credit card company may contact a debt collector. If the debt collector sues you, they may be able to force you to pay the debt. Read more: Is the freedom debt relief scam real?
Why did my credit score drop after paying off debt?
How to pay off debt fast with low income?
Can I pay debt before court date?
Should I invest or pay off debt?
How to pay off debt in a year?
How long to pay off debt?
How to pay off college debt?
Can you go to jail for not paying debt?
How to start paying off debt?
You should always start by creating a plan. Set out a budget and start contributing large amounts to your debt. Next, you should make all attempts possible to look at debt consolidation options, but only if the loan is at a lower rate than your current debt. You should take to a debt counselor about good methods for paying off your debt. Consolidation is an option: How do debt consolidation loans work?
Paying off debt is the road to financial freedom – take the path as seriously as you can. If you still have more questions, look at some of the other great content we have no our website!
Financial Advisor, DCL
Claire is a noted financial writer and author of hundreds of articles about personal and business finance. Before getting her MBA, she graduated with a BS in Economics. Her coursework focused on the different ways that debt, debt structure, and debt restructuring affect micro and macro-economic issues.
Upon graduation, she took a job at an investment bank that worked with municipal and county governments to help them reorganize and structure their debt so they could continue to provide essential city services.
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