Credit cards can grant you incredible rewards, such as travel miles and cash back. They are also a reliable source of emergency cash and can go a long way in laying the foundation of credit building. Unfortunately, things happen at the most unexpected times.
You can find yourself stuck in bad credit card debt. If you are in such a position, you are not alone. After all, Americans owe up to 841 billion dollars on their credit cards. Here is where to find credit card help to consolidate and clear debts:
Credit Card Balance Transfer
If your credit card balances are accumulating high interest, a balance transfer card might be the best option. However, this option works for customers with a high FICO score. Go for a credit card that charges n interest for at least one year and roll as much debt as possible.
Remember to check out the new credit card interest rate after the grace period, usually between 12 to 18 months. Besides, every bank transfer comes with fees, even for clients with 0% APR. The transfer charges range from 3 dollars to 3 per cent. Pay attention to every detail to ensure you can quickly clear off the balance before time runs out.
Debt Consolidation with a Lower Interest Personal Loan
Like credit card balance transfer debt consolidation is only a perfect option for clients with a good credit score. With an excellent credit score, you can qualify for a lower interest rate on a loan. A 5% APR is perfect, although anything below 10 per cent is acceptable and can offer you the relief you require. You can also work with a debt management company to help you combine all the money you owe into a single debt. However, be sure to do enough research on the company and check out the debt relief company reviews to confirm its eligibility.
How it Works
- Explore and evaluate the rate offered by your credit union, bank, and online lenders, among other financial institutions. Your goal is to find the perfect institution with the best terms and rates.
- Apply for the best loans based on your needs. Remember that your loan approval outcomes will depend on your creditworthiness.
- Once your loan is approved, you will use the money granted to clear the credit card debt. Sometimes, the financial institution might send the funds directly to your creditors.
Find Help Through Debt Relief
If your credit card debt is more than you can manage, consider taking more serious actions. You can use debt relief options such as debt management plans and bankruptcy. A debt relief company such as Freedom Debt Relief can help you clear the credit card debt much faster without paying the whole amount previously owned.
Debt Settlement Plan
A debt management plan helps clients resolve their credit card debts for much less and more quickly compared to other debt solutions. First, you will need to deposit into your FDIC-insured account. The deposit is much less than you would have paid to a creditor.
As you grow your account, the debt relief agents will work on a custom plan to clear your debt. Once there are enough funds in your account, the agents will negotiate with your creditors to clear your debts for much less than you owe. Every time they successfully clear off your debt, they will contact you for confirmation, authorization and approval. They will work to make a full settlement on each of your debts until you are completely debt-free.
Debt Management Plan
Debt management plans involve working with a credit counseling agency. It is the perfect solution for clients who cannot eliminate debt independently. However, you need a good credit score with no missing payments.
Having a team of credit management experts means that you have people negotiating with your creditors on your behalf. This makes it possible to devise a new repayment plan to which the creditors will agree. Once a feasible plan is in place, you will pay the credit counseling agency a fixed monthly rate.
Remember that the best relief option will help you clear your loan without creating more financial problems. When you decide to get professional help, enough due diligence will help you choose the best. Evaluate the success rates by checking the debt relief company reviews and testimonials from previous clients. Pay attention to even the smallest detail and leave nothing to chance.
Filing for Bankruptcy
Filing for bankruptcy helps you eliminate unsecured debts, including credit cards. It is one way to restructure your debts into a workable repayment plan spread over 3 to 5 years. This is the perfect option for customers with assets they want to retain. Sure, bankruptcy can stay on your credit records for up to 10 years. Your credit card will probably bounce back 90 days after filing.
Talk to your Creditors
Sometimes, you can talk to your creditors and explain your situation. A considerate credit card insurer might be willing to review the payment terms or even allow a hardship program. This is especially easy for you, a long-term client boasting an excellent track of payment records. With a hardship program, a customer can get relief when they encounter situations beyond their control, such as illness and employment affect their ability to make timely payments. Whether you get a hardship program or negotiate with creditors, either option can translate to waived fees or more affordable interest rates, depending on your insurer.
There is no doubt that credit card reward programs are excellent earning and saving up opportunities. Whether you are saving up for your next vacation or want to save a few bucks for the future, it is the way to go. However, plunging and getting stuck in credit card debt can be frustrating and exhausting. Even worse, it can gradually negate all your cash back, points or miles that you have acquired. If you are wondering where to find credit card help, you have numerous options. Take the time to explore the options that best works for you. This way, you can quickly eliminate bad credit debts, gain financial independence and get back to managing your credit card effectively. If you choose to work with debt settlement experts, check out the debt relief company reviews and ratings before working with them.