If you think your credit card has caused you too much trouble, it may be the time to pay off your credit card debt and start living without your plastic card. But how are you supposed to do that if your credit card debts have piled up? You must be wondering now how you may clear your debts in a smart and efficient manner without putting too much pressure on your personal finances. Should you borrow from friends or relatives or are you better off taking out online loans with fast approval? Well, you will not know for sure until you learn about the options you have.
How to Pay Off Credit Card Debts
Credit Card Debt Consolidation
Credit card debt consolidation is widely considered as perhaps the most effective way to deal with an overwhelming debt. The way this method works is simple. You simply need to consolidate all your credit card debts into a single loan that comes with a monthly installment that is reasonably priced. The debt consolidation company will negotiate with your credit card company so that you will be given an extension. Through this agreement, the interest rate will not be as much, and for you personally, you will not have to receive all those calls from the collector.
Debt Settlement Program
Debt settlement programs allow consumers to have as much as 60% reduction on their credit card debts. This can be done by paying off the outstanding balance after the reductions. This method is also known as debt negotiation. What will happen here is that you and your credit card company need to come to an agreement that the reduced amount will serve as the full payment of your credit card debt.
In a debt settlement program, you can make monthly payments without any charges by the company settling your debts. In this settlement, the credit card company should first have an agreement with you before they could receive your payments. It is therefore essential that you find a legitimate company that will be willing to forgo their service charges after you and your creditor have come up with an agreement.
Instant Online Loans with Fast Approval
If you are not willing to go for any debt settlement program, you may then consider taking out a cash loan to pay off your credit card debt somehow. With a direct payday lender, you need not show any proof of your credit standing. As long as you have a full time job and receive a regular income, you qualify for online loans with fast approval. The only problem is you will most probably get only a small amount of money.
Typically, payday loan companies only offer up to $1,500. This may not be enough to pay off all your credit card debts. Apart from a small amount you can borrow, you should be concerned about huge interest rates applied on online loans with fast approval. By borrowing from online lenders, you might end up having to deal with more interest and other charges.