If you have thought about your credit card debt more than once in the past few days, chances are it is starting to take hold of your finances. You may be falling further underneath the burden of large monthly minimums and balances that never seem to shrink. Have you felt desperate lately when thinking about your budget and the foreseeable future, which seems to completely involve paying off credit card debt?
Even though this might be one of the most lonely times in your life, you aren’t actually alone. Plenty of Americans struggle with the same obstacle. And the good news? Others have overcome and so can you. You could take one of many strategies when it comes to paying off your credit cards. You could utilize one of many tactics. But here is one idea you probably haven’t thought of – using online money lenders as a resource when going about
your credit card payoff project.
How can online money lenders help you? How can you benefit from a flexible, online loan when it comes to your
credit card debt? Keep reading this comprehensive guide on credit card debt and online money loans to find out
How Bad is Your Credit Card Debt?
There are a number of telling signs that your credit card debt is starting to get to unmanageable levels. For one,
you are psychologically intimidated by checking the total balance. You may simply pay the minimum and avoid confronting the facts. You could begin feeling high levels of anxiety when you think about your finances. You may even show signs of depression.
The credit card lenders may start cutting back your total allowed credit. Here’s why: when you have too high a credit
utilization ratio, that is, the amount of credit you’ve charged versus what is available to you, it puts a dent in your
credit score. Once this is reported and known across all credit bureaus, the banks respond by limiting your resources
since your score is now lower. This can further affect your monthly budget as your minimums might be raised and you may completely max out your credit availability.
When minimum credit card payments exceed 15 percent of your gross monthly income, you have a problem, according to many financial experts. This is when things start to look grim for the long haul. You might have stopped or never started putting money away for retirement. You are now in a situation where if you only pay the minimum, you have multiple years to go until the balances are paid in full.
Finally, if you have come close to missing a payment or have defaulted on at least one credit card, you are on the edge of more serious financial problems caused by credit card debt. All it would take is a minor raise of your interest rate and you could default on all of the cards, sending your credit plummeting and your finances into further disarray. When you start exhibiting any of these signs, it is time to take drastic action to reduce your credit card debt as fast as possible.
Stop Charging New Debts
First, put a halt to all of your credit card spending. Stop charging anything to your cards. If you have an automatic
payment system set up where some bills are charged to certain cards, cancel it and structure the payment to come out of your checking account after pay day. If you are ever going to reduce the overall balance, you absolutely must stop adding to the balance.
If you are living on a budget that is unsustainable, meaning you cannot keep up with your regular bills unless you use your credit cards, it is time to start making more money and cutting expenses. It is not acceptable to live day to day depending on charge cards for cash – that will get you into deep trouble very fast.
Start Examining Your Budget
Maybe your budget is not in a complete state of ruin yet, and that’s good. That means you have some time to make repairs. The first thing to do is make a detailed list of everything you spend money on every single week, month and year. List the average amount of money you spend on food and gas to get to work. List the subscriptions you have. List all your bills, including electricity and cell phone payments.
Next, start crossing items off the list. Where can you make changes? Can you swap your cell phone plan for something cheaper? Can you reduce the cost of your gym membership? Can you do without cable while you make progress on your credit cards? And make sure to be honest with yourself about eating out and grocery shopping. You will save lots if you make it a point to pack your meals and cook at home instead of buying ready-made food all the time. You can do it – you have to do it now – and so it’s time to make a realistic food budget for each week and stick to it.
You can also start thinking about your income. Do you have opportunities to make your money? Could you pick up a side gig on the weekends? Could you sell items in your home to bring in extra cash? There is a myriad of opportunities for people who want to work extra, but it is up to you to find the time and the drive to be that person.
Don’t Neglect Your Savings While You Work on Debt Payoff
One of the biggest mistakes people make when faced with severe credit card debt is panic. Because they react so strongly, they start putting all of their money towards their card balances and do not think about an emergency savings fund. Sadly, once you start taking your credit card debt seriously is probably when your home’s water heater or washing machine will go bust. Once again, since you don’t have any savings to rely on, you are back to charging up your credit card. That may be one of the most disheartening things that can happen to someone who is newly focused on credit card debt payoff.
Make sure to be putting money away consistently into an emergency savings fund. You should add up all of your monthly expenses and multiply that by 6. That figure is how much you should realistically have in the bank in the occasion that something goes wrong – you lose your job, you have a major medical emergency, etc. Of course, while you are paying off your credit cards it may be very hard to reach that number, but you can start by trying to gather at least one month’s worth of expenses into a savings account. You will be happy you did when a major bill comes up and you just started to see progress being made on your credit cards. You will be happy you don’t have to charge the whole cost back on your account.
Consider a Short Term Loan
Finally, you could also consider using online money lenders as your main resource for gaining enough cash fast to pay off credit, especially if you are in a dire state of need. A loan will allow you to pay off multiple balances at once, greatly reducing your monthly burden when it comes to minimums. But when you pay off the loan, you will only have one payment to worry about. You are basically consolidating your debt while relieving the stress you feel as you watch each credit card slowly reach its maximum. A stress-free loan with a predetermined payment plan is a much more manageable bill for your budget and will cause you much less anxiety during the repayment term. You will know exactly how much you owe and exactly how long it will take to pay it off.
What are Online Money Lenders?
Online money lenders are organizations that offer a wide variety of loans to all types of applicants. They may specialize in payday loans, car title loans or personal loans. They have a large network of loan financiers and are able to search for many different types of loans depending on what the applicant is looking for. Online money lenders prioritize speed and focus on helping consumers by finding them cash almost instantly. Transactions are completed fully or almost fully online. Funds can be picked up or transferred to the applicant’s bank account. The process is simple and straightforward, which is what many consumers are looking for.
Are You Looking for Convenience?
One of the major perks to using online money lenders is the convenience factor. You don’t have to visit an office and fill out a paper application. You can submit all the facts needed online, so just make sure you have a computer and an internet connection. Most online money lenders also offer instant loan assistance made available via telephone or internet chat. You can usually call at all hours of the day rather than just normal business hours, so applying after work or on the weekend is completely fine. Once all the documents go through and you are approved for your online loan, you can get the funds extremely fast, much quicker than you would at a bank. You can knock out those credit card balances within a day or so. Wouldn’t that be a relief?
Do You Want Multiple Loan Options?
Online money lenders also prioritize giving you the power over your loan selection process. You will have a variety of interest rates to choose from. You can make sure your interest rate for the loan is lower than your collective credit card interest rate, and you will be almost guaranteed to save money. You can get a loan of varying amounts, enough to take care of your cards, or most of them at least, and any other outstanding debts that are weighing you down. You are not forced to get one type of loan over the other – online money lenders make sure you are happy with your choice and you fully understand your responsibilities as far as the loan agreement goes before finalizing all the details.
Do You Want the Certainty of an Accepted Application?
Also, online money lenders accept people that may be turned away from traditional lending institutions. If your credit card debt has gotten out of hand, your credit score has probably taken a hit or two as well. It is okay if you aren’t in the perfect score bracket any longer, at least when you are applying with online money lenders. You can find satisfying loan options even with poor credit and get approved without any issues.
How Can Instant Credit Card Debt Payoff Help You?
When you pay off all of your cards in an instant, the first benefit you will gain is psychological. You will no longer feel beholden to multiple lenders. You will have resolved your credit card debt before default takes away your good name. Say goodbye to the anxiety that has been building for months or even years. You can start to live freely again without the constant financial pressure you’ve been feeling for so long.
Second, you will preserve your credit score. By avoiding default with the help of online money lenders, you are making sure you don’t do any more damage to your credit than you already have. Now, as you pay off your loan, you can work at building your credit back up and avoiding the temptation of credit cards. Everyone deserves a fresh start, and this can be yours.
You also have the benefit of lowering the strain on your budget. While you may have been dedicating a large portion of your monthly income to multiple minimum payments, now you just have one manageable loan payment from the online money lenders. Make sure as you apply that your total monthly amount due is going to work with your cash flow. You can even pay extra on the loan and get it paid off sooner than you might think.
All in all, using online money lenders to pay off your large amounts of credit card debt is not a bad idea. Make credit card debt payoff your goal and no matter what, through hard work and resiliency, you will see positive results over time.