The Best Way to Resolve Multiple Credit Card Debt
Getting control of your credit card debt would be a huge relief. Multiple credit cards can quickly snowball into more debt than you are prepared to handle, especially with interest rates continuing to stack up that number. The more credit cards in the stack, the harder it can be to face the task of resolving your debts. The good news is that there are several techniques and services that can help you take control of multiple credit card debt and build a path to debt recovery.
At DebtBlue, we connect people with the resources and advice they need to overcome debt. Let’s start with your four best options for resolving multiple credit card debts in one debt relief plan.
Multiple Credit Card Debt:
How to Get Debt Relief
If you want to tackle your credit card debt solo, you can get control by choosing a repayment strategy. The two best strategies are snowball and avalanche repayment styles.
Snowball Debt Repayment
The snowball debt repayment strategy says to pay off your smallest debts first. Pick the credit card with the smallest balance and completely pay it off before moving to the next smallest balance. This can help you cross credit cards off your list, along with any other little debts you want to take care of.
Avalanche Debt Repayment
The second option is the avalanche debt repayment strategy. This strategy involves picking the credit cards with the highest interest rate to pay first. By wiping out your most high-interest debts, you can reduce the total amount of money you lose each month to interest charges.
Transfer the Debt to a 0% Interest Card
Your next option is to buy yourself time to pay off the credit card debst without interest. You can do this by transferring the debts to a newly opened credit card that grants 0% interest for the first 12-24 months. Pay off your other cards with the new card, then you can close the other cards or leave them fully paid off. Over the next year or two, carefully pay off the balance on the new card without any interest building up.
Arrange a Debt Consolidation Loan
A debt consolidation loan is a more professional alternative to the card transfer. You can out a specific type of incremental loan to pay off your multiple credit cards. The consolidation loan transforms your credit card debt and interest into an easy repayment plan. You can enjoy an affordable monthly loan payment, a low-interest rate, and freedom from collection calls or threatening letters.
Pursue Debt Resolution Negotiations
Debt resolution is the process of renegotiating your loans with creditors and debt collectors. It may be possible to reach an agreement that reduces the total amount of money owed and allows you to pay back the loans at a more manageable pace with lower monthly payments.
While you can negotiate with each credit card company on your own, you’ll likely get the best results from working with a debt resolution service that has skilled negotiators and established relationships with the major credit providers.
In some cases, you can pair debt resolution with debt consolidation for lower total payments managed through a consolidation loan.
Credit Debt Management Best Practices
When making a plan to deal with your multiple credit card debts, a few best practices can help you along the way.
- Cancel Recurring Charges on Your Cards
Prevent subscriptions and automatic services from adding to your credit card debt by cancelling the services.
- Switch to Debit-Living
Until your cards are under control, manage household expenses on debit to avoid using hot cards.
- Lock Your Credit Cards - Don't Cancel
You may want to cancel credit cards when they get out of hand, but this can hurt your credit score. Lock your cards instead to prevent further spending or unpredicted charges
- Consult with a Debt Advisor
Speak with a financial expert on the best way to move forward
Find Credit Relief Programs and Support with DebtBlue
Credit card debt doesn’t have to bring you down. If you are ready to pursue a debt relief plan, DebtBlue can help with a variety of debt resolution services, from guided programs to DIY resources. Contact us today to speak to your own debt management advisor and map the right solution to resolve your credit card debts.