Most Americans have 4 credit cards and the average balance on credit cards is a little bit over $6,000. While many people can manage their credit card debt, some find it difficult and end up stressing over how they are going to repay their debt.
Thankfully, there are many solutions available to help people overcome their debt. ClearOne Advantage can help you come up with the best way to get out of debt fast, no matter how much debt you have accumulated.
If the amount of debt you owe is spiraling out of control, you should reach out to a certified debt specialist from ClearOne Advantage who will assess your personal information and your finances and give you realistic and viable options for a debt-free life.
The important thing to remember is that you want to pay down debt as quickly as possible to avoid additional interest fees which can cause your credit card debt to get even further out of control. Even a large amount of debt can be dealt with in a timely manner, if you choose the correct option.
Managing credit cards can be upsetting, but if you’ve been struggling to only make minimum payments and don’t know how to get out of debt, read on for some tips on how to get started.
Credit card debt can be stressful and difficult to get out of, but it isn’t impossible. ClearOne Advantage can help you come up with a plan to get out of debt fast, no matter how much debt you have accumulated.
It is essential to pay off debt as quickly as possible to avoid additional interest fees increasing your credit card debt even further out of control. Even a large amount of debt can be dealt with in a timely manner, if you choose the correct option.
How to Get Rid of Credit Card Debt Fast
There is no need to panic when you realize that your debt has escalated to unsustainable levels. Here are a few options to help you pay off debt fast, depending on the amount of debt you have already accumulated and your income.
1. Understand Your Debt
The first step is to get a clear picture of your financial situation.
List all your debts, including credit cards, student loans, personal loans, and any other outstanding debt balances. Note the interest rates, minimum monthly payments, and due dates for each.
This will give you the full image of what you owe and help you prioritize which debts to pay off first.
2. Create a Budget
Create a realistic budget to manage your finances.
Track your income and expenses for a month to see where your money is going.
Categorize your expenses into essentials (like rent, utilities, groceries) and non-essentials (like dining out or entertainment).
This will help you find areas where you can cut back and allocate more money toward your debt. Paying off debt may require you to live a more frugal life for a while.
3. Do-it-Yourself Debt Reduction
If you are current on your payments, have a steady income, and can afford to pay more than twice the monthly minimum payments on your credit cards, you may be able to tackle debt on your own. Of course, it requires a lot of self-discipline to prioritize paying down debt against more frivolous — but highly enjoyable — spending.
4. Go for the Snowball or Avalanche Method
Two popular methods for paying off debt are the debt snowball and debt avalanche methods.
The debt snowball method involves paying off your smallest debt first, then moving on to larger ones. This can motivate you, as you see debts being eliminated one by one. For example, if you have three credit cards with $2,000, $3,500, and $1,800 balances, eliminate the lowest one to give yourself a mental boost and then move to the next one.
Conversely, the avalanche method focuses on paying off debts with the highest interest rate first, followed by the next highest rate. This can save money in the long run and even help you put money toward your savings accounts. You may also have a credit card that offers 0% APR for the first months or the first year. This can give you breathing space to repay other credit cards with double-digit interest rates.
5. Debt Consolidation Loans
This method of managing debt fast is essentially transferring your debt to one loan payment, and only works if your credit score is still high. You can roll all your existing, unsecured debts into one new loan. Often, consolidation loans come with lower interest rates, especially compared to credit card rates.
The interest rate on your debt consolidation loan depends on your credit score. If you can’t get a lower rate than what you are already paying on your debt, this is probably not the option for you.
While they do pay off your credit card debt almost instantly, debt consolidation loans are still a type of debt. Without determination to stay out of credit card debt, you may be tempted to use your now available credit. Stay committed to your debt management plan or you may find yourself in the same position down the road — except this time you’ll also have loan payments to make.
6. Debt Settlement
Debt settlement plans are for those who have over $10,000 in unsecured debt and are having trouble making payments or have already missed payments.
It is the only one of these options that lets you pay less than you owe and helps you get out of debt even faster. Debt settlement companies, like ClearOne Advantage, negotiate a settlement with your creditors to reduce your debt by as much as 50% before fees and are designed to resolve your debt in as little as 24-48 months.
7. Use a balance transfer card
If you have a good credit score, you can apply for a balance transfer credit card that offers 0% APR for a while — usually the first months or up to a year.
If you transfer your existing credit card balances to this credit card, you may have 12 months or more to repay your debt without paying any interest. With a firm debt repayment plan and good financial discipline, you can repay your debt.
If you don’t repay the full credit card balance by the end of the promotional period, though, the remaining balance will be charged the normal credit card interest rate. A balance transfer card is best if you know you can repay your debt in a timely fashion.
8. Increase Your Income
Consider ways to boost your income, such as taking on a part-time job, freelancing, or selling unused items. Any extra income can be directed to your debt, which will accelerate your payoff timeline.
Explore opportunities for overtime at your current job or ask for a raise if it’s been a while since your last one. Pick any other type of freelancing job or part-time job to increase your income and make extra money to repay your debt quickly.
9. Avoid New Debt
Now is not the time to get into more debt. Limit the use of credit cards, postpone significant purchases, and be mindful of your spending habits.
Develop a frugal mindset to help yourself stay on track and prevent further financial strain. Adopt a more minimal way of living for the next few months so you can escape from card debt frustration.
Tips for Paying Off Credit Card Debt Fast
If you are just starting to accumulate credit card debt, you may be able to pay off the debt without professional intervention.
by managing your money and your bank account with caution, before you hurt your credit score. Paying off debt on your own takes discipline to succeed but these tips may help you stay on track now and in the future:
Stop using your credit cards
Pay off your debt before using your cards to avoid additional interest fees.
Catch it early
Don’t wait until debt collectors are calling before getting help with your debt. The longer you wait, the more you will owe. If you are struggling with your current debt level, postponing a solution will only make things worse.
Know when to ask for professional help
If you have tried to get out of debt on your own with no success, it may be time to go to a professional, such as ClearOne Advantage.
Contact ClearOne
If you are struggling financially, debt settlement may be the best way for you to get out of the debt trap. Contact a ClearOne Certified Debt Specialist today at 866-481-1597 and get a free savings estimate to see how much debt settlement can save you!
