Have you become a prisoner of debt? Does it feel as if there was a big, dark cloud hanging over you? If so, take a deep breath and relax. We have 10 ways for you to get out of debt fast. There is no real way to get rid of your debts overnight but some of these solutions could have you debt free in less than a year.
- Refinance your house. If you own your own home, chances are you have enough equity in it that you could get either a second mortgage or a homeowner’s equity line of credit (HELOC) and use the money to pay off your debt. Keep in mind that you’ll be putting your house at risk because if you can’t make the payments on your loan, the lender could repossess it. Learn more about refinancing.
- Go to a consumer credit counseling agency. You’ll be assigned a counselor who will help you develop a payment plan, He or she will negotiate with your creditors to get your interest rates reduced and your plan approved. Then, instead of paying your creditors, you’ll send just one check a month to the credit counseling agency, which will probably be less than the sum of your current payments.
- If you have multiple credit cards, you could “Snowball” your credit card debt. Make a list of your credit cards with the interest rates and balances. Start paying off the card with the highest interest rate first, while making just minimum payments on your other cards. When you get that card paid off, you can take the cash you’ve freed up and start paying off the card with the second highest interest and so on. Learn more about the debt snowball method.
- File for bankruptcy. If you file for Chapter 7 bankruptcy, two things will happen. First, your creditors will have to stop calling and harassing you. Second, all of your credit card debts will be “discharged,” meaning they will be eliminated. A chapter 7 bankruptcy can also get some of your other unsecured debts discharged such as medical bills and personal loans. See if bankruptcy is right for you.
- Pay off your non-revolving debt first. This is debt such as automobile loans. If you can double up on your payments and get rid of that loan, you can use the money you’ve freed up to start paying off the rest of your debts. Learn more about budgeting
- Get a signature loan. You might be able to get what’s called a signature loan or unsecured loan and use the proceeds to pay off your debts. However, it’s very difficult to get an unsecured loan for more than $10,000. If you owe more than this, you will have to look for another solution. Learn about personal finance loans
- Reduce your credit card interest rates. If you have credit cards with high interest rates – like 21% and above – you should be able to transfer your balances to a card with a lower interest rate. Almost all the credit card networks are now offering what are called “zero balance transfer” cards. If you transfer your balances to one of these cards, you would not have to pay any interest for anywhere from 6 to 18 months. This is time you could use to pay down your balance. Learn more about zero balance transfer cards
- Make more than the minimum payments. Next time you receive a statement, check the amount of interest you’re paying vs. the minimum payment required. Chances are your minimum payment will cover only the interest owed and do nothing to reduce your balance. If this is the case, you could continue to make minimum payments and never ever get out of debt. See how much debt costs you
- Negotiate debt settlements. If you are six months or more behind in your payments, your credit card providers may be willing to negotiate settlements – maybe for as little as fifty cents on the dollar. You’ll need to contact each one and make a settlement offer. Most of them will probably accept it. However, you’ll have to have enough cash on hand to be able to pay whatever amount the two of you settle for. Learn about debt settlement
- Hire a debt relief company. When you choose a company such as Debt Consolidation USA, you will probably save thousands of dollars vs. credit counseling and debt consolidation loans. We can connect you with the country’s best debt settlement providers – companies that have a long history of working with the credit card companies. In fact, we offer a 100% satisfaction guarantee. If we can’t help you achieve your goal of becoming debt-free in a reasonable time or if you are ever unsatisfied with our recommended debt relief programs you can cancel at anytime without any penalties or fees. Learn about Debt Consolidation USA
If you are having trouble with getting out of credit card debt, talk to us. We want to explain your options and help you get relief. Many times we can help but some times there are better programs available depending on your personal situation. Give us a call or fill out the form and get a free, no obligation debt analysis without pressure. We want to help you get out of credit card debt as fast as possible and at one of the lowest costs possible.