Credit card debt can feel like a millstone around our necks. However, there are some ways to pay off your credit card debt and lighten the financial and emotional load. Read on to find out what they are.
Use your savings
Most of us have at least a little squirrel away for a rainy day, and what better thing to use this on than paying off credit card debt? Indeed, by putting your savings to work in this way, you can make many improvements to your local situation, such as reducing the amount of overall interest you will have to pay and also raising your credit score sooner, something that can help you to stay out of debt over the long term.
Sell an annuity
Another method of paying off your credit card debt you may wish to consider is selling an annuity. Annuities are sums of money awarded by the court when you win a case for compensation, and they can be quite substantial.
Of course, to be able to pay off your credit card debt with an annuity in one go, it will need to be paid as a lump sum. Otherwise, you will have to act in line with the payment plan the court has agreed upon. Although, it is also possible to sell annuity for cash and release most of the value in a single transaction. Something that makes it much more suitable for paying off a large debt, once and for all.
Balance Transfers
You may also choose to pay off your credit card debt by using another credit card. Now, this may sound counterintuitive, but there is a robust principle behind it. Indeed, this option only works when the card you are transferring your balance to has a lower interest rate than your current card.
However, if you can successfully negotiate this (some new cards even have 0% for a set time), you can prevent any further interest charges from accruing and make it easier to pay off your debt. Although, it is worth noting that even when transferring your balance to a 0% card, you will need to find the money to pay off the amount you owe from somewhere.
Consolidation Loan
Last of all, if your credit card bills are getting out of hand, you may wish to consider a consolidation loan. This is when you group all your debts and get a loan that pays them all off.
You will then be left with only 1 debt to manage, and if you have done things correctly, the interest rate on this should be as low as possible. Additionally, it is important to check and see whether the monthly payment for this single loan will be set to an amount that you can more easily afford than before. The reason being that if it is, it should help you from falling into debt again and so help you stay away from credit debts over the long term. Online cash advances with less interest are also another option if you need money to pay them off.
When you are looking at paying off debts you need to do your full research and weigh up which options will be best for you. These are just a few of the options available to you, you might also want to consider the pros and cons of debt relief programs and ensure you read the small print before making your final decision.