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credit card debt This is nothing new in the United States. The national balance is rapidly increasing, and according to statistics, the total amount reaches $1.03 trillion. Federal Reserve Bank of New York. Once again, once you get some sense of value, you’ll wish you never touched those easily slidable pieces of plastic.
You decided it was over. You’re ready to say goodbye to credit card debt forever.
That’s great news, but there’s one problem. High interest rates make it difficult to service these revolving debt obligations. So minimum payments seem like nothing more than a never-ending debt trap. So what do you do if you have five figures in credit card debt and need to pay it off immediately?
Get out of debt faster with a debt relief program today.
4 ways to pay off $15,000 in credit card debt fast
Sure, $15,000 in credit card debt can be scary, but it’s not the end of the world. The truth is, with proper planning and a little discipline, you can forget about debt before you know it. Here are four ways you can quickly pay off $15,000 in credit card debt.
Take advantage of debt relief programs
If you’re having trouble making your minimum monthly payments and it seems like you’re stuck with your debt, it may be time to talk. debt relief program. Debt relief companies are good at making sure you get the lowest interest rate possible and come up with a repayment plan that stays within your budget. Once he signs up, he typically joins one of three programs.
- debt consolidation loan: A debt consolidation loan is a personal loan issued for the purpose of repaying high-interest debt. Not only does it reduce your overall interest costs, but it also offers a fixed payment plan and a clear path to repayment.
- debt consolidation program: and debt consolidation program, An expert will negotiate interest rates on your behalf. You make one payment to the program, and the program pays that payment to your creditor.
- debt consolidation program: Debt settlement involves negotiating the principal balance on your credit card. This will reduce the pain associated with interest rates and significantly reduce the amount you owe.
Get the debt relief you deserve today.
Reduce interest costs with a home equity loan
Shane Cummings, CFP, CEPA, AIF, Wealth Advisor, Director of Technology/Cybersecurity at Hulbert Hargrove can be repaid.” Set the loan interest rate. ”
this is convincing Options for dealing with high-interest credit card debt.
“For example, if you have 20% credit card debt, interest will accrue faster than you can pay it back. You can use your home equity as collateral to borrow at a lower interest rate, giving you the opportunity to reduce your debt.” says Shane. Since you’ll be paying interest, you’ll be able to pay off that debt faster. ”
Take a 401k loan
Your 401k may also be the key to debt relief. That is, as long as you’re building enough value into it. In most cases, you can borrow up to 50% of the value of your 401k or $50,000, whichever is less, and use that to pay off your credit card debt.
“The interest rate on a 401k loan will typically be significantly lower than the interest rate on a credit card,” says Brian Martin, wealth manager at Merit Financial Advisors. “Additionally, a repayment plan is built in through payroll and you will be repaying with interest.”
So a 401k loan can not only help you consolidate your debt and reduce your payments, but it can also be beneficial for your retirement in the long run.
Take advantage of balance transfer credit cards with promotional interest rates.
“Consider consolidating multiple credit card debts into one with the lowest interest rate,” Martin explains. You can also transfer your balance to a “new credit card if a better short-term interest rate is available.”
He went on to explain, “Credit card interest can take a huge toll on your monthly income.” Therefore, it is best to “try to minimize this expense as much as possible.”
balance transfer credit card It’s often an effective way to do it. Many of them offer low or no interest for more than a year. However, once the promotional period ends, any remaining debt will be charged at your card’s standard interest rate. Therefore, it is best to pay off your debt during the promotional period.
If that’s not possible, be sure to check the card’s standard interest rate and make a plan to deal with the debt after the promotional period ends.
conclusion
Seeing $15,000 on your credit card statement may seem scary, but you don’t have to stay in debt forever. If you’re struggling to make your minimum monthly payments and can’t see the light at the end of the tunnel, enroll in a debt management program to get out of debt faster.
