Thursday, November 24, 2022

How To Get Rid Of 15000 Credit Card Debt

Don't Miss

The Best Way To Pay Off $10000 In Credit Card Debt

How I Paid Off $14,000 in Credit Card Debt in Just 7 Months

Why is it so difficult to get out from under credit card debt? Even if you have made a BUDGET, it still seems nearly impossible to get rid of that debt. The reason for this phenomenon is due to the high-interest rate that you are paying on a monthly basis. Below you will see a simple graph that shows a common repayment strategy.

The Application Process On Upstart: Its Not Just A Credit Check

After researching personal loans and shopping around, Julia decided to go with Upstart because she liked how clear the communication was with everything.

I knew exactly what I was agreeing to. I liked the clear start and end date for when I was expected to pay off the debt.

Although her credit score was high, she liked the comprehensive way Upstart looked at life factors outside of her credit score. Julia said she was also asked about her education and income.

After applying online and getting approved, Julia was pleasantly surprised to see her account quickly was funded with a day or two.

Balance Transfer Credit Card

But by moving your balance from a high-interest credit card to one with a lower rate, you can whittle down your debt without interest eating up such a large part of your payments. Some issuers will even offer a 0% introductory APR to sweeten the deal.

These introductory rates typically last between 12 to 24 months. Ideally, you want to pay off the balance before the introductory period is over. Otherwise, you may find yourself worse off than before, if your generous 0% APR offer turns into a higher-than-average interest rate and youre charged back interest from the original purchase date.

This option is best for those with good or excellent credit, as youre more likely to receive a better deal and be approved. Just make sure to check the fine print before you sign. Some issuers may charge you a balance transfer fee equal to 3% to 5% of the transferred amount. Compare that fee to potential savings from transferring your debt.

Also Check: Cabelas Vis

Get Rid Of Credit Card Debt Consolidate

Just like every person faces difficult times at some point in their life, your financial life may have taken a hit from all the accumulated debt. Despite your best efforts, things are not working out as expected. Credit cards and other financial options you have utilized previously do not seem to pull you through. Whatever the situation, you can lower the negative impact of multiple credit card debt by combining them into one monthly payment.

This payment comes with a lower interest rate that will pay down the debt faster. One of the best ways to respond to your other debt is to pay them off with a reasonable interest bearing loan obtained from bank, credit union or other lenders who are willing to take a risk on you. Once you have the loan in hand and debt paid off, you can begin creating a plan for future financial success. Consolidating debt is a financial plan designed to get you funding, but only for paying off risky credit card obligations.

Check If You Can Apply For Bankruptcy

How to Get Rid of Credit Card Debt Fast (&  Legitamitely)

You might be able to apply for bankruptcy if you can’t pay your debts and the amount you owe is more than the value of the things you own.

The bankruptcy period usually lasts 12 months. If you go bankrupt your creditors wont be able to contact you about your debts or take you to court.

Bankruptcy can have very serious consequences, for example you could lose your home or your job. It’s important to understand how it could affect you and get help from your nearest Citizens Advice before applying.

There are strict rules to follow if you apply for bankruptcy. Some of the rules apply for the time before you applied for bankruptcy. You could go to prison or get a fine if youve done anything that counts as a bankruptcy offence. You could also have restrictions put on you by the court which make your bankruptcy period longer. Check what counts as a bankruptcy offence.

Also Check: Capital One Cash Advance Policy

What Is A Debt Collection Lawsuit

When you fail to pay your credit card debt, the company may file a debt collection lawsuit seeking payment. If your , you have a short time to file a response to the lawsuit. If you ignore the credit card lawsuit, the company will file a motion asking the judge for a default judgment. The default judgment states that you owe the credit card debt. In most cases, the judge allows the credit card company to add attorney fees and other costs to the debt you owe.

The default judgment is recorded at your local county courthouse. The judgment accrues interest until it is paid in full. In most states, the judgment also attaches to any real estate that you own or purchase after the judgment is entered via a lien. If you sell your property, you must pay the judgment in full from the proceeds of the sale.

Actions a Creditor May Take After Getting a Judgment

State laws determine the legal steps a credit card company may take to collect a judgment debt. In some states, creditors are allowed to garnish your wages for judgments. Some states also allow judgment holders to apply for supplemental proceedings to identify any personal property the judgment holder may seize to satisfy the debt.

How Can We Help You Get Out Of Credit Card Debt

Here are ways we can guide and help you get out of credit card debts:

  • Help you budget and start paying off the debts
  • Help you set financial goals and polish your spending habits.
  • We can help with balance transfers
  • Keep you in touch with our debt consolidatorWe can give you a home equity loan

We hope you found this information useful to you. Contact as for additional information or clarification.

Read Also: Care Credit Rewards Mastercard

Cutting Debt Will Not Only Save Money It Could Up Your Credit Score

Thomas J Catalano is a CFP and Registered Investment Adviser with the state of South Carolina, where he launched his own financial advisory firm in 2018. Thomas’ experience gives him expertise in a variety of areas including investments, retirement, insurance, and financial planning.

Marcus Reeves is a writer, publisher, and journalist whose business and pop culture writings have appeared in several prominent publications, including The New York Times, The Washington Post, Rolling Stone, and the San Francisco Chronicle. He is an adjunct instructor of writing at New York University.

  • Expert Tips for Removing Credit Card Debt
  • Paying Off Your Credit Card Balance

    How I Paid Off $15,000 Of Debt

    If you have debt and are only making the minimum monthly repayment, it can feel never ending. This is because the minimum repayment you make might be only a little higher than the interest each month so the amount you owe will reduce very slowly.

    Example: if your credit card balance is 1,000 and you pay off 50 each month at an interest rate of 17%, our clearing your credit card calculator shows you that it will take two years to repay the balance, provided you stop using the card. If you increase your repayments to 100 per month, you could clear your balance in 11 months . Our also works out how long it would take to clear your credit card debt if you switch to a credit card with a lower introductory or interest rate. That could mean clearing your debt even quicker and it could also cost you less in interest.

    Don’t Miss: Activate

    Reaching A Turning Point

    After making minimum payments without a clear plan, Julia knew something more dramatic was needed to help obliterate the debt. She recalls, I was tired of treading water.

    After seeing a few Upstart ads on her social media feed, she became curious and decided to check it out. Julia said she liked how easy it was to input her information on Upstarts website and the simple way the process was laid out. She decided to apply for a personal loan.

    , I was able to use a loan to wipe out the credit card debt and consolidate all of the payments into one. This one payment was less than all three minimum payments for each credit card, she explained.

    In order to fulfill her goal of graduating from college, Julia knew she would have to deal with debt. It was because of this debt that she was able to even attend NYU in the first place. There is a certain stigma with having debt. Having debt can make you feel like youve made bad choices. I wouldnt have been able to go to college if I hadnt taken out loans.

    Growing up in an economically depressed town, Julia recalled her parents worked hard to provide for her and her sisters, but they had very little extra room for anything else. We were comfortable, but we didnt have a lot of money.

    Cut Existing Loan Costs

    It may be possible to swap your personal loan to a provider that charges a lower rate of interest although youll need to crunch the numbers to see if its worth it.

    Youll have to call your existing lender and ask it for a settlement figure which will be the total of the debt still owed plus a settlement charge for paying it off early.

    Youll then need to compare this figure to the interest rate on the best new loan you may be able to get, and see if the saving stacks up.

    Also Check: Cash Advance On Capital One

    Save A $1000 Emergency Fund

    If getting rid of those credit cards freaks you out because you use them as an emergency fund, then get yourself an actual emergency fund as fast as possible.

    Save $1,000 quickly. Leave it in savings as a buffer between you and those life happens moments. And trust us, its way better than a credit card. If you have an emergency and pay cash, you wont be charged interest. Boom.

    Does Consolidated Credit Adhere To These Guidelines

    How to Get Rid of your Credit Card Debt in 6 Practical ...

    Yes. Consolidated Credit is a registered 5013 nonprofit organization. We are nationally accredited through the Financial Counseling Association of America . We are also approved by the Department of Justice to provide pre-bankruptcy counseling in our home state of Florida.

    Connect with a certified credit counselor to get the help you need to get out of debt.

    All articles and educational content on Consolidated Credit are written by and carefully reviewed by certified credit counselors, HUD-certified housing counselors and financial coaches.

    Consolidated Credit follows strict sourcing guidelines and only links to reputable sources for information, such as government websites, credit bureaus, nonprofit organizations and reputable news outlets. We take every step possible to ensure all information comes solely from certified financial professionals.

    If you feel that any of our content is inaccurate, out-of-date or otherwise questionable, please let us know through the feedback form on this page.

    Read Also: How Do I Get Cash From My Capital One Credit Card

    Get Your Spending Under Control

    Sometimes people get into credit card debt due to unexpected medical or emergency expenses. Other times, the source of debt is chronic overspending, which often means you are spending more than youre saving or more than you have in your account. To gain full insight into how much you are spending, making a reasonable budget is the next best step to help alleviate that debt.

    Matt Kelly, owner of Momentum: Personal Finance Coaching in Durango, Colorado, recommends that your budget account for the following:

    • Basic necessities: rent/mortgage, utilities, groceries and gasoline.
    • Obligations: minimum payments on credit cards and other debt.
    • Nice-to-haves: restaurants, coffee and entertainment costs.
    • Irregular recurring expenses: insurance, car repairs, tires, haircuts, vitamins, toiletries, vet bills, holiday gifts, travel, weddings and gifts.

    Its the last category that often trips people up and becomes the source of credit card debt, Kelly says. These little and not-so-little expenses go onto the card and are hard to pay off.

    Once youve put your expenses down on paper or entered them into a spreadsheet, go through each item and find ways to free up enough money each month to pay off all your debts in 12 to 18 months, he says.

    Who this strategy is good for: Anyone lacking a sufficient budget.

    Pay Off The Most Expensive Debts First

    Sadly, many people have much more debt than savings. So even if you use all your cash to pay them off, you’ll still have debts left. Therefore, it’s important you prioritise using your savings to get rid of the most expensive debts.

    Before you do this, check to see if you can lower any of your debts’ interest rates.

    Recommended Reading: Td Bank Prepaid Visa Debit Card

    If Your Salary Is Being Garnished

    When your creditors take the first step of filing a lawsuit, you are at a risk of your account being frozen or your wages garnished. You can stop this by filing for bankruptcy immediately. The court will stop the garnishment and you will get some financial relief. The law doesnt apply for garnishment for domestic support such as child support and alimony.

    Change The Behaviors That Got You Into Debt

    How I Paid Off $15,000 Of Credit Card Debt In 6 Months!

    Getting out of debt begins by eliminating the reasons you went into debt in the first place. Even winning the lottery wont solve your problem if you never learn how to spend less than you have.

    People get into debt for different reasons. School, job loss, medical bills, or, if youre like me, stupidity. But why you got into debt doesnt really matter. What matters is that you dont let it happen again! Heres what not to do.

    • If you took out $50k in student loans for a bachelors degree, dont take out $100k more for a PhD.
    • Did you fall into a pile of debt after losing your job? Resolve , to work on an emergency fund so this will never happen again.
    • If you, like me, spent years living a life you couldnt afford, then figure out what the life you can afford looks like, and get there.

    This last step is easier said than done. In fact, that goal alone is responsible for about a third of every personal finance article every written. Live within your means,Spend less than you earn, etc., etc. Why has so much written about such a simple concept?

    Because once we get accustomed to living a certain way, its incredibly difficult to change. You know, how do you start living on ramen after two years of The Capital Grille?

    Thats where this comes in:

    Read Also: Mybestbuy Visa Card

    Stop Using Your Credit Cards

    If you want to get out of credit card debt, its time to break up with your credit cards. And you dont have to have a nice dinner or a big conversation with them. Just put them on the table and say, Its not meits you . . . Youre bad for me, my finances and my future. Goodbye. And never look back.

    If you stop using credit cards, youll never run the risk of having a credit card balance. Ever. Again. Start using a debit card and cashyour own real moneywhen you pay for things.

    Take Care Of Your Mental Health

    Approximately one in four people in the UK will experience a mental health problem each year and worrying about debt or money can exacerbate the problem.

    The good news is there are steps you can take to improve the situation youre in, even if you currently feel unable to take even the tiniest of steps.

    Find out more: mental health charity Mind has a wealth of useful information, and a supportive Side by Side community.

    Read Also: Old Navy Shopping Cart Trick

    Pay Off Credit Card Debt With A Balance Transfer Card:

    Low Rate Balance Transfers | 0% Intro APR. Apply Now!Wow, thats enticing until you read the fine print after 12-18 months, the introductory rate comes to an end, and the interest rate rises to 19.9%. Balance transfer cards also come with up-front fees. These fees range from 3%-5% of the amount of credit card debt getting transferred. If you move $10,000 onto a balance transfer card that charges a 4% fee, thats $400 in up-front costs.

    Banks use balance transfer cards as a trap. They charge you the upfront fee for the card, and when you cant pay off your entire balance within the introduction-rate period, they jack up the interest rates. They make money when clients fail to pay off the balance within the intro period. They want you to fail.

    Away From Your Credit Cards

    How To Get Out Of 15000 Credit Card Debt / How to Get Out ...

    After you take responsibility for your debt, the second step is to stop using your credit cards!

    Its very important that you do not add to your debt, Beverly told And if youre using a balance transfer card, no new purchases on that card. Thats a big mistake that people make.

    While youre paying off your debt, consider budgeting with cash and using the envelope method with our step-by-step guide.

    Read Also: Valero Self Serve Login

    Check If Bankruptcy Is Right For You

    You’ll need to pay £680 if you decide to apply for bankruptcy. Find out more about bankruptcy fees.

    Going bankrupt might not cover all your debts. Debts like court fines, student loans and child maintenance arrears wont be written off if you go bankrupt. Check which debts bankruptcy covers.

    There are things you need to check before you think about applying for bankruptcy. You’ll need to:

    More articles

    Popular Articles