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How To Pay Off Credit Card Debt Fast

Woman holding three different credit cards.

There are plenty of financial benefits of using credit cards. However, credit card debt is a major problem plaguing many Americans across the country. In fact, as of 2023, the average amount of credit card debt in America is $7,486. While this amount fluctuates depending on interest rates, cost of living, and the general state of the economy, it continues to remain an issue that many are unable to resolve on their own. Here at Landmark National Bank, we want to give you the tools and information you need to succeed and help you pay off your credit card debt.

We are committed to answering your most pressing questions when it comes to paying off credit card debt such as what a balance transfer is, whether you should get a personal loan for credit card debt, and how to pay off credit card debt when living paycheck to paycheck. In this blog, we will take you through different methods of credit card debt relief, including personal loans and balance transfers as well as warnings to keep in mind as you are paying off your credit card debt.

If you still have questions or want to apply for a loan or checking account, contact your nearest Landmark National Bank today.

Methods for Credit Card Debt Relief

While the task of lowering your credit card debt seems incredibly daunting, it doesn’t have to be. There are many methods for escaping credit card debt fast that are effective and reliable. The best method for paying off credit card debt depends on multiple factors, including your credit history, your income, and how much debt you currently have.

Debt Snowball

If you are confident that you can pay off your debt without transferring the balance over or consolidating them with a loan, it’s still smart to have a method in place to make it easier as you start lowering your credit card debt. One such method is the debt snowball, which involves paying off one credit card at a time, either starting with the card with the lowest amount due or the one with the highest APR.

During this time, you’ll be paying the minimum payment on the rest of your credit cards, and putting a larger amount towards your target debt. Once you’ve paid off your first credit card, you take that payment and apply it towards the next card. As you continue paying off credit cards, you’ll begin paying them off faster and faster, resulting in a “snowball.”

When you are able to only focus on one card at a time, it makes it easier to see your progress and gives you more digestible goals. However, if you are looking for something that helps pay off your credit card debt faster, you may need to look into taking out a personal loan or performing a balance transfer.

Personal Loans

Financial adviser speaking to a customer about loan options.

One method for paying off credit card debt is to consolidate your balances into one personal loan. With this method, you will only be making one payment each month rather than a multiple that are scattered across your different accounts. Most personal loans also have a lower interest rate than a typical credit card. While this does not make the amount you owe less, it does help lower your monthly payments, making it easier for you to pay all your bills each month. For those living paycheck to paycheck, this can offer major relief.

However, there are some things to keep in mind as you are browsing for a personal loan that fits your needs. Each lender has different eligibility requirements in order to qualify for their loans. Make sure to check if you meet their basic requirements by looking into your credit score and debt to income ratio.

You also need to determine the amount you qualify for to see if it will cover your debt amount. You may only receive enough to cover a part of your debts, but in many cases it could still provide relief. The last thing to keep in mind is the interest rate. It’s important to make sure the interest rate is indeed lower than your credit card interest rate in order to make the loan worth it. Once you’ve paid off the balance on your credit card, you can then decide whether to keep it for future purchases, or close it completely.

Balance Transfers

Balance transfer cards are also a viable option for paying off debt fast. With this option, you could transfer your remaining balance to a new credit card that carries a balance transfer offer. These cards normally have a 0% introductory APR if you transfer the balance within a certain period. This means you can start paying off debt without accruing interest right away. You may have to pay a fee to complete the balance transfer, but it will likely be much less than what you’re saving on interest.

Remember, you have a limited amount of time before you start accumulating interest, so you should start paying off the debt as soon as you can. You also want to make sure you are making your payments on time as your offer could be revoked if you begin making late payments.

Another thing to consider is the credit limit of the card you are transferring your balance to. Make sure it exceeds the amount you currently owe or you will still have to keep your current card open and you won’t have any wiggle room if it’s too close to what you owe.

Scams To Avoid When Paying Off Credit Card Debt

Woman staring at credit card and multiple bills in front of a computer

While there are many viable options for paying off your credit card debt, there are also several scams to watch out for in order to avoid going into even more debt. According to the Federal Trade Commission, there are several red flags to avoid when you are looking for credit card debt relief. If a company charges you fees before actually settling your debt or claims that you are being entered into a “new government program” that will help bail you out of personal debt, there’s a good chance it’s fraudulent. Remember: if it seems too good to be true, it probably is.

You also want to steer clear of anyone guaranteeing that they will make your unsecured debt go away. Another sign of a debt settlement scam is if the company tells you to stop communicating with your creditors or that they can make debt collection calls and lawsuits go away. If you are ever unsure if something is a scam or not, contact the experts at Landmark National Bank.

Help Pay Off Credit Card Debt With a Landmark National Bank Checking Account Today

With the proper resources and the right information, you can start saying goodbye to your credit card debt. Stop by your local Landmark National Bank to open a checking account or ask about our loan options. We are here to help you find everything you need to feel good about your finances. Contact us today.

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