The recent pandemic brought with it somewhat of a global financial crisis. Many were left in a difficult position, having to make cutbacks when it came to money matters and spending. Unfortunately, this left many in debt as they had to take out credit cards and loans to get themselves and their families through the tough situation in which they had found themselves.
Here are some ways to pay off pandemic credit card debt fast.
Non-profit Debt Settlement
Debt settlement agencies are one option that allows credit card holders to pay off their debt at a lower cost than what is owed. While you still might have racked up a lot on your credit card, these programs referred to as “Nonprofit Debt Settlement” can allow you grace of up to between 40% and 50% off your debt. When you consider it, that’s a fair amount of grace and can really come in helpful, especially if the amount you owe is high.
The program allows you to pay back in monthly installments for up to 36 months in total, which can allow you to rid yourself of debt in a way that will put less pressure on you. There’s no need to make a one-off payment here that will leave you with further financial stress and make you feel the burden of having to pay off a large bill all at once.
Debt Relief Program
A debt relief program offers similar leeway in terms of reducing the cost of debt and making it easier for you to pay it off for less. Liaising with the creditors, the debt relief company will negotiate to bring down what you owe and set up an agreement for installments.
Installments will allow you to spread the cost of what you owe over the set time that’s agreed upon. Your payments will be made into a special savings account that you can open specifically to pay off your credit card debt.
One company offering such help is Freedom Debt Relief.
The length of time you’ll pay your installments off with a debt relief program is usually between two and four years. Factors that come into play here include the amount of debt you owe, how quickly you can save to start paying off your debt, and the amount of debt relief that’s been agreed upon with the creditors.
Choosing a debt relief program will be a good option if you’re unable to settle the debts you owe personally based on the contract you’re tied into with your credit card company and it’s costing you and your family problems financially.
One final method for settling your debt is what’s referred to as “Debt avalanche.” The way it works is that you begin with the credit card you’ve accrued the most debt on, and your work on paying it off first. Then, you move on to the next highest credit card debt you owe and pay it off, working your way down until you’ve paid off your very last.
While it might be enticing to tackle your smallest debts first, it makes more sense to leave them to last since. With the avalanche method, you’ll be able to clear off your credit card debts with the highest interest first. Saving more on the interest you’ll pay can mean spending less in the long run until all your debts are cleared.
Discussed here are some of your options if you’ve found yourself in credit card debt as a result of the pandemic. Remember, there are ways to make paying off your debts a little easier and some methods can help by allowing you to save some cash in the process.