Credit card debt can be terrifying. For customers facing debt, there are many solutions that are available – but not all solutions are applicable to each consumer. When choosing a solution to credit card debt, consumers need to ensure they consider the amount of the debt, the type of debt, the interest rate of the debt and the current repayment plan the customer has in place to repay the credit card debt. Considering these factors can help the consumer to determine the right choice for their credit card debt solution.
Here are three solutions for credit card debt:
Credit Card Consolidation
Credit card consolidation loans are for customers that have multiple credit cards, with varying interest rates and repayments that are made on a monthly basis. Credit card consolidation loans are a great choice for customers that are making the minimum repayment of the credit card debt and fee as if they are on a never ending cycle of credit card debt. Credit card consolidation loans can be an effective way to repay the credit cards in full, and ensure that the interest being repaid towards debt is reduced, too. Using credit card consolidation loans, the customer will make one payment a month, with a reduced interest rate, to reduce the interest and ease the stress on the finances that comes with credit card debt.
Credit Card Interest Reduction
Did you know that you can contact the credit card company and request a lower interest rate? If you are a customer facing credit card debt and find yourself making only the minimum payment every single month, there is a solution available with a simple phone call to the credit card company. Customers can contact the credit card company with the request to lower the interest rate to make it just a little easier to repay the credit card debt that has been accumulated.
Zero Interest Balance Transfer
Customers can take advantage of a balance transfer to reduce the amount of interest that is paid towards the credit card balance that has been accumulated. Customers can contact the financial institution to determine whether there are any credit cards available with the introductory offer a zero interest rate for the balance transfer. Once approved, customers can transfer the debt from the existing credit card to the zero interest credit cards, to reduce the amount of interest that is being paid. This way, the customer can repay debts toward the principal of the credit card debt, rather than the interest.
Remember, when it comes to a balance transfer, the customer must repay the balance before the grace period on the balance transfer expires. If the balance is not paid before this time the customer is subject to the regular interest rates, which can sometimes be higher than the original credit card.
Using these techniques, the customer can lower the interest rate and even reduce the debt altogether to create manageable payments for the customer to take advantage of in the debt repayment process.