Being in debt with credit cards and bills makes you feel like your sinking fast in quicksand. With so many resources for reducing debt, how do you know which way is the best for you? Below are some helpful resources for reducing credit card debt.
1. Debt Relief Programs
Some people think of debt relief programs as a last resort, but they do work. If you are receiving calls from collectors and are behind on monthly payments, this is a good option. Debt relief companies contact your creditors to make special payment arrangements. They normally negotiate having late fees waived, reducing your interest rates, stopping the collection calls and putting a stop to legal action against you. The debt relief company will reschedule your debt on a lower payment plan making it easier for you to make the minimum payment monthly.
2. Equity Line of Credit
If you have any equity built up in your home, you can get a home equity line of credit with a low-interest rate to pay off your debt. Pay close attention to the details of the loan to make sure your interest rate doesn’t go up after an introductory period. Stay away from programs that offer a teaser rate that jumps up pretty quickly after you close on the loan. Keep in mind your home equity line of credit is tied to your home. Don’t miss payments, or the bank has the right to come after your home.
3. Balance Transfers
Think about taking advantage of any zero percent balance transfers that get mailed to you. These can lower your credit card debt by simply transferring the balance from a high-interest rate credit card to the new low-interest rate card. The rate usually lasts at least a year. During that time, you will be paying less because of the interest. You can then apply more of your money to the principal. Make sure you know what the regular interest rate will be after the introductory time is over.
No one wants to file for bankruptcy Edmonton, but if you have a stack of bills that is overwhelming and stressing you out, you need to do something. If your income has significantly decreased or if you lost a job and just can’t pay the bills, this is a good option. Make sure you use an experienced law firm, like Exelby & Partners Ltd, when you file to be sure you know all the proper legalities. Let one of the attorney’s take care of this for you. Filing for bankruptcy eliminates your debt pretty quickly.
By using one of these debt reduction strategies, you can start living your life again and get back on the road to financial freedom.