While it can be intensely stressful, there are many ways to pay off high-interest debt if you know where to look. This guide is a good place to start looking.
When you’re trying to pay off high-interest debt, it can feel like you’ve got an insurmountable rock wall standing between you and financial freedom. You want to climb over it, but every time you start to climb you don’t move as quickly as you’d like or end up sliding back down.
So that’s why we created this guide — to help you find the right path for you as you pay off high-interest credit card debt.
The Do-It-Yourself Method
There are two ways to pay off your high-interest debt faster if you’re doing it yourself — make more money or spend less. And that doesn’t have to be as hard as that sounds. We’ve got three ways you can get started paying off your high-interest debt your own way.
Call Your Credit Card Company
Plan and Budget
Make More Money
This is pretty straightforward. You take your high-interest credit card debt from one card and move it to another. Then your new company usually gives you a reduced interest rate, sometimes reduced down to zero, for a period of time. It can be a great option if you’re diligent about watching your balance as those sweet interest rate reductions are usually temporary.
Consolidation / Refinancing Loan
This is actually one of the things we do at Payoff to help with financial wellness. Consolidation/refinancing loans are where you get a loan from another company and use that money to pay off your current debt.
“Isn’t that just exchanging debt for debt?” you may be asking. And the answer is yes, but the debt is better debt (which will make sense in a second). Consolidation/refinancing loans tend to offer you lower rates and shorter terms that are designed to save you money in interest and to help you get out of debt faster. So now your high-interest debt is now lower-interest debt.
If you’re looking for a consolidation loan, we happen to think our own debt consolidation loan is pretty great. But shop around and make sure you find the best company (still hoping it’s us) and offer that fits your life.
Credit Counseling & Debt Management Plans
A classic team: You with your high-interest debt and desire to pay it off, and them with their years of experience and expert knowledge. But before you both skip off into the debt-free sunset, make sure to research to decide if the savings will outweigh the costs.
This should be your very last choice. But if you’ve exhausted every other option and now bankruptcy is your only choice, then be sure to do your research first.
Now It’s Time to Choose
Now it’s on you to create your own personalized plan for how to pay off high-interest credit card debt.