Read on to know how to pay off credit card bills with different debt help options.
1. Consolidation loan â€“ This type of loan can be taken from either banks or financial institutions. You may take out a loan to pay off all your outstanding debts. There are 2 types of consolidation loans â€“ secured and unsecured. Secured loans are those which you take out against your house/property. In case of secured loans, you are charged low interest rate. Unsecured loan means you take out a loan without keeping anything as collateral against loan amount. This loan can be a sort of risk for lender since borrower does not keep anything as security against loan amount.
2. Balance transfer: With the help of balance transfer method, you can pay off several credit card debts. You can transfer several credit card debts to one such card which has low interest rate. This way, you can pay off your outstanding credit card balance with ease. Once you transfer your balance to one of these cards, you should repay balance of the card within the low introductory rate period. In case you do not pay the balance within this period, you may be charged a high interest rate on balance amount.
3. Debt snowball: In debt snowball method, make a list of all debts you owe starting from lowest outstanding balance to highest. Once you pay off your smallest debt, move on to next smallest debt and this way, the process continues till you pay off all your outstanding debts.
4. Debt avalanche: Debt avalanche is another debt help option that helps you repay your outstanding debts starting from highest interest rate to lowest one. Once you pay off your highest interest rate, move on to next highest interest rate and in this way, you pay off all your debts.
Thus, the debt help options help you come out of debt worries without much difficulty. You will be able to free yourself from the burden of credit card debts and lead a stress free life.
Source: Sophia Garfield, Realty Times, published 8/27/12