Eliminate Credit Card Debt

Written by admin on June 3rd, 2011

Sky high interest rates and big monthly fees on your credit card debt can put you in financial distress faster than you would have thought possible. If you are one of the many people in that situation, you may be searching for a credit card debt elimination program. The opportunity to completely eliminate credit card debt can be difficult to find, because you may think that the only way to eliminate your debt completely is by paying off your credit card debt.

Unfortunately, most people who carry a number of credit card balances from month to month do not have easy access to enough cash to allow them to pay off their credit cards in full. If you’re facing this situation and are still hopeful of locating a method for total credit card debt elimination, one alternative is to turn to assets that you currently own in order to obtain a secured loan in order to wipe out your card debt completely.

For many people, the equity in their home may be the only source of collateral to secure a credit card debt elimination loan. In many cases, the interest rate and repayment terms are much more favorable to the consumer than those provided by the credit cards finance companies. There may also be tax benefits available for home loan payments that would not be in place for credit card payments.

You should check with your mortgage broker and see if you are eligible for a home equity loan or a home equity line of credit that will allow you to borrow sufficient funds to pay off your high rate credit cards. If you can secure a home loan at a better interest rate, you could then pay off the credit card balances and save money each month.

If you don’t have enough equity in your home, you may have a vehicle that could provide sufficient collateral for a credit card debt elimination loan. There are many lenders who are happy to refinance automobile loans, and you may consider such a loan because in many cases you may also be able to secure a vehicle loan at a rate that is lower than your credit card interest rates. If so, then using the equity in your car, truck, or boat may help you by allowing you to pay off those high rate cards and pay a lower total payment each month.

No matter what method you choose to eliminate your credit card debt, the key to your success is to avoid charging up big balances on your cards once you have paid them off. If you think that you may be tempted it may be advisable to cut them up. Credit cards provide a convenient method of payment which can unfortunately get out of control very quickly. If you manage to pay off those high rate card balances, make sure you put those cards away in a safe and secure place and use them only for emergency purposes.

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