One of the most common problems for people is credit card debt. High-interest rates can make it nearly impossible to pay off your balances—especially if you’re only making minimum payments. It can take DECADES to get out of debt with regular monthly payments.
Try this test:
- Check your most recent credit card statements to see the balance and the APR applied to each account.
- Total up all your balances and estimate the average APR you’re paying.
- Now enter that information into the calculator below.
Not happy with the results?
Now you can see just how long it will take to pay off your debt if you keep going the way you are. You also see how much it’s costing you. Wouldn’t you rather use that time and money to reach your financial goals? If so, it’s time to find a better way to pay off your debt.
Solutions for Paying Off Credit Card Debt Faster
Every financial situation is unique, so the debt solution that worked for a friend or neighbor may not work for you. That’s where Debt.com comes in. We help you understand all the solutions you can use. Then our debt relief specialist helps you evaluate your finances to find the best solution for your needs, credit, and budget.
A balance transfer card is a credit card specifically designed to pay off existing debt. With good credit, you can qualify for a card that offers 0% APR for 6-18 months. This gives you time to pay off your debt completely interest-free.
Balance transfers may even work for other types of debt besides credit card debt. Depending on the card, you may be able to consolidate personal loan balances and, in some cases, even remaining balances on auto loans.
This solution is ideal if you have good credit and extra cash in your budget to make the largest payments possible. The goal is to pay off the entire balance before the 0% APR period ends.
This solution is less effective when you have bad credit or are living paycheck-to-paycheck.
Debt consolidation is another popular way to simplify your financial life if you're juggling bills on multiple debts. You get a low-interest rate personal loan and use the funds to pay off your credit cards and other debts. You can even find lenders that will allow you to consolidate student loans.
Since a consolidation loan has a low interest rate, it allows you to focus on repaying the debt you owe instead of wasting money on interest charges. In some cases, you may be able to reduce your total monthly payments and still get out of debt faster.
This solution is ideal if you have good credit that will help you qualify for the lowest interest rate possible. You also want to balance your budget, so you can stop making new charges on your credit card until the consolidated debt is paid off.
This solution is less effective if you have a low credit score because you won’t qualify for an interest rate low enough to be as beneficial.
When do-it-yourself debt solutions don’t work, it’s time to call a certified credit counselor. These nonprofit organizations exist to help consumers get out of credit card debt. They evaluate your debts and budget. If they see that you cannot effectively get out of debt on your own, then they can help you set up a debt management program.
This program consolidates your debt into a single monthly payment, but unlike a consolidation loan, you still owe your original creditors. The credit counseling team works with them to reduce or eliminate the interest rates applied to your balances. You make one payment to the credit counseling agency, and they distribute the payment to your creditors every month on your behalf.
This solution is ideal if you can’t effectively consolidate on your own, but you still want to pay off your debt in full. It’s also great if you’re living paycheck-to-paycheck because it reduces your total credit card payments by 30-50%, on average.
This solution is less effective if most of your debts are charged off or already in collections. Since the program works by minimizing interest, it works best for accounts that are still active.
Debt settlement is the solution that you hear advertised as getting people out of debt “for pennies on the dollar.” First, it’s important to set the right expectations. Debt settlement can get you out of debt for significantly less than you owe—clients end up paying about 48% of what they owed, on average.
Debt settlement can work in a few ways. If you have money available already—say from a home sale or tax refund—then you hire a debt settlement team to get you out of debt immediately. If you don't have funds available, the company will help you set aside funds and build them up to make settlement offers. Then they get to work negotiating with creditors and collectors to get you out of debt for the lowest percentage possible.
This solution is ideal when you have so much debt that you can’t reasonably afford to pay everything off, but you still want to avoid bankruptcy. It’s also ideal when you’ve already fallen behind and have accounts that are charged off or in collections.
This solution is less effective if you’re at all concerned about preserving your credit score. Debt settlement will damage your credit for seven years from the date each debt first became delinquent. But if you’re already behind then your credit has already suffered that damage, so it’s best to focus on just getting out of debt as quickly as possible.
Get a free evaluation to find the best solution for your needs and goals!
Now that you know a little more about the solutions you can use, it’s time to get started! Call (844) 844-2543 to speak with a debt relief specialist. They’ll help you evaluate your situation and then connect you with a top-rated company that can provide the solution you need.
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