Consumer debt as of the end of 2019 was $14 trillion. That was before coronavirus and the current growing number of people filing for unemployment. Currently, people are amassing even more credit card debt as unemployed people are using credit cards to pay rent, utilities, and a host of other things during the COVID-19 stay-at-home mandate.
What’s more, there were already those who felt like all they did week to week or month to month was struggle to pay off credit card debt. There is a positive way forward that will help you consolidate credit card debt.
Read on to find out five efficient ways you can consolidate your credit card debt so you can get your life back.
Consolidate Credit Card Debt
Economists believe that the U.S. economy will recover from the COVID-19 pandemic even if it takes some time. During the time as the economy goes through a restart, people need to know they have a way to recover from their debt. Noone enjoys fielding calls from bill collectors because of credit card debt.
But you’re not alone because 28% of Americans have a credit card or line of credit that’s gone to a collection agency. The good news is there are five proactive steps you can take to help you consolidate your credit card debt. The five steps will help you combine all your credit card debt, so it exists under one umbrella.
Having just one new debt which combines all your previous debts may make you feel like you’re getting a second chance for a financial restart.
Five Credit Card Debt Solutions
There are five credit card debt solutions that will ease the financial pressure you’re under. These five solutions will help you begin to take control of your financial life once again and know that you will get through this one step at a time.
#1 Receive a New Line of Credit
A new line of credit sometimes confuses people because it’s credit that got them into their current credit card debt issues. Yet a line of credit that helps you restructure your debt is by far one of the best and almost immediate solutions you can find. If you’re falling behind on multiple credit card payments or are only paying the minimum, this is a proven solution.
By obtaining a line of credit that consolidates your unsecured debt balances and lines them up under one monthly payment, you’ll wonder why you didn’t do it a lot sooner. The one payment helps you with terms that range from twelve to forty-eight months at 0% interest. 0% interest with terms that range from twelve to forty-eight months means you’re paying off the debt that hangs around your neck for much less money with far easier terms to meet.
#2 Get a Personal Loan
Even with credit card debt holding you in a financial stranglehold if your current on your payments, then you can get an unsecured personal loan. An unsecured personal loan is a very good way to consolidate your credit card debt if you have good credit. The personal loan solution takes your unsecured debt balances and rolls them into one single monthly payment that includes all your credit card debts.
The personal loan has a fixed interest rate that helps you pay off the loan, usually within 12-84 months. Interest rates can be as low as 4.99%.
#3 Reduce and Pay Off Bad Credit
No one wants to do it, yet almost all of us have had to do it at one time or the other. We reduce and pay off any bad credit we have. We do this when we’re trying to get a handle on what we still need to pay out so we can become financially responsible once again.
It doesn’t matter if the bad credit is in credit card debt or consumer debt. We try to get rid of it because every month, added to our debt is high debt interest, fees, and payments that don’t get close and let us pay off the principal.
#4 Reaching Out to Caring Friends or Family
We often know who the people are in our lives that can be counted on when we need them most. We don’t like to think that borrowing money from them is a debt solution we want to try. Yet, often it makes total sense to ask a friend or family member to lend you money.
It’s to your benefit when you ask a family member or friend to help you with a loan to pay off debt if you follow a few rules. You need to write down your loan and repayment terms on paper. They may forgive the loan, or they may not.
What matters is you go into the loan request professionally and have every intention of paying the debt off.
#5 Consult and Work With a Debt Consolidation Service
When you’re introduced to a way that can consolidate your debt, so you have lower monthly payments, you know it’s a good deal. If you can receive a reasonable interest rate and better terms than you have now, it allows you to save on the wasted and ridiculously high-interest rates and late payment fees you’re giving to the credit card companies.
You accomplish your debt consolidation with the help of an astute debt consolidation solution company that’s able to help you restructure your debt with a loan or line of credit.
Your Next Step Forward Is the Most Important One
Consolidate credit card debt so it can be worked with, resolved, and completed with viable debt solutions. Credit cards are easy to get and harder to get a handle on once they spiral out of control. Every credit debt solution offers you a new way forward.
But there are some credit debt solution companies that stand above the rest. These are the credit card debt solutions that seek a final result in which you have your debts paid off, and you’re on a new path that leads to financial freedom.
When you’re ready to take the first step towards your new financial objective, reach out to Debthunch. Debthunch has already done the heavy lifting and has the best, smartest, and some of the most straightforward debt solutions you’ll ever find.
But the first step you have to make yourself. Click over to our website or call us. We’ll be waiting with a debt consolidation solution you’ll want and need.