Ease Your Credit Debt Stress

Do you have high credit debt and need financial relief fast? Learn about the top ways to ease your credit debt stress today.

Credit card debt could increase rapidly and with little warning depending on the situation. How do people get into credit debt? Multiple reasons exist and often vary from person to person or household to household. If you find yourself with excessively high credit bills, however, the most important step is to find viable ways to relieve your debt stress.

Debt relief programs are available nationwide. One of the most popular methods of credit debt relief is to take out a consolidated loan. Companies like Freedom Financial and many more offer consolidated loan programs designed to lower your monthly payments and eliminate your credit debt. Continue reading to learn about the top ways to ease your credit debt stress today.

How Do People Get into Credit Debt?

Credit debt is much easier to experience than one might think. Credit cards offer many useful benefits but also have potential to become financial traps. If you suddenly find yourself drowning in credit card debt you are not alone. Credit cards provide the ability to spend more money than you earn and/or are capable of paying back. The term “cold, hard cash” is popular for a reason. You simply have the amount of cash you have. Credit cards present the tempting option to outspend your monthly earnings, however, and require caution and restrain to properly use.

Emergencies also arise and require payments many people simply cannot afford. Credit cards provide a beneficial way to pay for such emergencies but also leave people with high, unaffordable monthly bills. Saving for an emergency fund is one way to prevent this from occurring. Still, some households simply do not have the financial means to build up such savings. Credit cards present their only way out of an emergency bind.

Cash-back and other credit card rewards programs are two other significant reasons people experience credit debt stress. Providing cash back and rewards points usable toward future purchases is a marketing strategy credit card companies use to encourage customers to continue spending on their cards. These points and rewards are quite useful when used properly. When misused, however, they lead to high monthly bills and potentially damaged credit.

Finally, many consumers simply own too many credit cards. They are spread financially thin, able to only make the minimum payments on each card every month. Making the minimum payment allows for interest to build up. This interest consumes a significant portion of your payment each month and keeps you in debt longer.

What Can You Do to Help Your Credit Debt?

Debt settlement is an option to help you get out of credit debt. This option allows consumers to pay off a portion of their debts in exchange for becoming debt-free. Creditors allow this because most of the charges built up on long-time high-balance accounts is interest. Essentially, creditors will still make most (or all) of their money back even when debts are settled. Debt settlement might have an adverse impact on your credit, however. Debt settlement attorneys are also often required. These attorneys charge fees as well. It is vital to understand all terms and study the impact the program will have on your long-term finances and credit rating before making any commitments.

Zero-interest balance transfers are also options. Credit card companies want your business. Therefore, many offer the option to transfer your balances from other credit cards to theirs. For a temporary period, your new balance will not accrue interest. This is a short-term solution. When used properly it allows you to pay down high balances faster at no additional charge. If you are unable to pay off your balance during the zero-interest promotional period, however, you might end up back where you started albeit on a different credit card.

What Is a Consolidated Loan?

A consolidated loan, also referred to as a consolidation loan, combines your credit debt into one installment loan at a lower monthly payment. The lower monthly payment is accomplished by charging you a lower combined annual percentage rate (APR) on your balance. The loan term refers to the length of time you have to pay off the balance in full. Longer loan terms result in lower monthly payments because your total debt owed is spread out over an affordable period.

How Does a Consolidated Loan Help? - Benefits

Obtaining a consolidated loan almost instantly cleans up your credit by removing all outstanding revolving (credit cards and lines of credit) accounts and converting multiple balances into a single balance from a single creditor. Because the loan term is spread out over time your monthly payments are reduced. APRs offered on consolidated loans vary based on numerous factors, however. Your credit score is a major factor when determining your APR options. A higher FICO score typically equates to consolidated loan creditors offering lower APRs. Your income level and employment history also both impact the APR for which you will qualify. Some creditors will negotiate APRs, while others will not. Talk with your consolidated loan officer and ask what APR options are available to you.

A consolidated loan offers peace of mind as well. You and/or your household will receive much needed financial relief. If your credit was damaged due to outstanding credit card bills, it will begin to be repaired. Repaired credit will allow you to make improved financial plans for your future and the future of your family. This includes the ability to save up for:

  • Emergencies.

  • Vacations.

  • College tuition.

  • New car down payments.

  • Home improvements.

Best Consolidated Loan Companies Today

Freedom Financial (as listed above) is one of the top companies offering consolidated loans in the U.S. today. Freedom Financial has been in business for over eighteen years helping consumers get out of credit debt fast. Personal loans are available in addition to debt relief, credit counseling and multiple other options.

National Debt Relief is another top option for consumers with credit debt stress today. This company offers as high as fifty percent reduced monthly payments when you qualify for one of their programs. Additional top consolidated loan providers in the U.S. today include: