If you’ve been using your credit card as a financial lifeline for a long time, it’s likely you’ve racked up quite a bit of debt. Credit card debt is among the most expensive of all debts and one of the hardest to pay off. With extremely high interest rates, it can be nearly impossible to make a dent in your debt unless you’re putting significant sums of money towards it each month.
Luckily, there are a few ways to pay off a credit card in full.
It may sound simple, but budgeting is in fact one of the easiest ways to pay down your credit card bill. Oftentimes, people simply don’t know where their money is going, so it’s impossible to know how much you could be putting towards debt. By creating a plan and prioritizing paying down high-interest credit cards quickly, you could find yourself reducing your credit card debt faster than expected.
If you have multiple outstanding debts, debt consolidation may be an option. Debt consolidation is a financial arrangement wherein you combine multiple debts – credit cards, lines of credit and other loans – into one regular monthly payment. It can be advantageous because it can result in a lower interest rate and simplify the debt repayment process by combining many payments into one.
Credit Counselling Services of Atlantic Canada offers debt consolidation through its Debt Management Program. Our experienced credit counsellors negotiate with your creditors on your behalf to come up with a manageable repayment schedule.
The main advantage of a debt management program is the added education and financial literacy that results from it. Through a debt management program, you’ll learn to live within a budget and work hard to pay back your debt.
Studies have shown that the consumers who successfully complete a debt management program become much more responsible debtors than those who have no financial intervention or file for bankruptcy. That means that even if you’re looking for an easy way out, it’s likely that you’ll rack that debt right back up again afterwards. Education is the key to long-term successful money management.
Debt settlement involves repaying a portion of your debt. It is a viable way to get credit card debt relief when you don’t have access to the entire amount of money that you owe, but you do have a lump sum of money that you can use to pay back part of the debt. In exchange, the creditor will eliminate the rest of your debt.
There are different credit card debt settlement options available and only one that is right for you. If debt settlement seems like a solution for you, you should consult with a credit counsellor to determine which debt settlement option is best for you. When choosing an accredited credit counselling agency, you should do extensive research to avoid fraudulent companies or outrageous fees.
Seek Help If You Need It
Paying off a credit card in full can be a huge relief for many people in debt. There are multiple options available that you can implement with the support and expert advice from a credit counselling agency. Contact us today to find out more about how we can help you achieve credit card debt relief.