Uncertainties can knock on your door anytime, and it isn’t easy to deal with them if you do not have a well-designed plan in advance. Using your credit card furiously without worrying about the consequences or your budget can get you into a debt trap.
If you find it difficult to pay off your credit card balance, then you can consider various credit card debt solutions that help in managing the debt. Here is the list of credit card debt relief that is available for you to consider. But, before choosing one, make sure you research the available credit card debt settlement services:
Credit Card Balance Transfer
Transferring your debt from a credit card with a higher interest rate to one that is available at a comparatively low-interest rate is one of the best ways to overcome the situation of the debt trap. If you qualify for the balance transfer, it will help you pay the debt principal faster and more efficiently. In addition, it helps in consolidating multiple credit card balances into one by simplifying your bills. But, you must note that credit card balance transfer can be complicated and is associated with plenty of risks. To fetch the most from it, you will have to pay off as much debt as possible.
Consolidate Your Loan
Another way to reduce the debt is by consolidating it into lower-interest personal loans. After applying for a personal loan that is available at a lower interest rate, you can pay off your loan faster with one simplified monthly payment. Although these credit card debt solutions do not reduce the amount you owe, it will help boost your efforts to get out of the debt trap situation.
Debt settlement refers to the process of negotiating with the creditor to accept the lump sum payment, which is less than the total amount you owe. You can either go for a credit card debt settlement via:
- On your own
- Credit card debt relief platforms
This credit card debt solution helps to reduce the amount of debt and prevents you from falling into bankruptcy. But, it is not as easy as it sounds. The credit card debt settlement for a lower amount entirely depends on the creditor. Also, before entering into any agreement, think carefully, as it can negatively impact your credit score.
These are some of the credit card debt solution that you can consider as per your needs. You can get these services from debt relief companies. Some companies claim to settle for you but are actually scammers; therefore, you must ensure that you check the reliability of the debt relief platform. You must stay away from the company that claims or does the following:
- Guarantee you to clear your debt
- Charges fee before settling the debt
- Fails to explain the consequences of communicating with your creditor and halting payments
- Guarantees to stop all the stressful collection calls or legal actions
- Guarantees for credit card debt settlement with just a few pennies
You must stay away from credit card debt settlement companies claiming these, as the settlement process entirely depends on the lender’s decision. However, you can always rely on FREED if you want to settle your debt without effort. It is India’s 1st debt relief platform that offers customized services according to the borrower’s budget to help them live a debt-free future. To know more details, you can visit FREED’s website.