How do I pay off debt?
Every consumer with a large amount of debt or high credit card balances wants to know just one thing: "How do I pay off debt fast?"
There are many possible answers to this question. Credit card loan consolidation involves taking on new debt to pay off existing bills. Credit card debt settlement and credit card debt negotiation involves asking creditors to settle your debt for an amount that is smaller than what you actually owe. In the end, the right answer to the question "How do I pay off debt?" depends on the amount of debt you have and your financial goals.
How do to pay off debt?
- List each of your debts in order from largest to smallest interest rate.
- Figure out average monthly income.
- Assign funds from average monthly income to each debt in order to reach minimum monthly payment.
- Put any extra funds (after costs and debts) in the given month toward the account with the highest interest rate.
How do I pay off debt – and stay out of debt?
Here's the important thing you should know. Rather than asking "How do I pay off debt?", the information you really need is "How do I pay off debt and learn to avoid it in the future?"
So often, consumers who choose debt consolidation or debt reduction discover that after a few years they still have the same amount of debt or even more. This happens because when they applied for credit card loans or started a debt settlement process, they lacked good information about how to make these strategies work and how to avoid getting scammed by less-than-honest companies. In addition, they did not get the advice they needed on how to address the choices and behavior that got them into debt in the first place.
When you want helpful advice and objective answers to the question "How do I pay off debt most effectively?", the professional credit counselors at American Consumer Credit Counseling (ACCC) can help.
How do I pay off debt with ACCC?
ACCC offers free credit counseling to individuals and families who are ready to solve their debt problems and who want answers to the question "How do I pay off debt?" Our certified credit counselors will help you evaluate your current financial situation and talk with you about the options you have for paying down debt. And we'll help you decide which strategies will work best with your financial situation and goals.
We'll also provide answers to the question "How do I pay off debt faster?" For many consumers, this may be a credit card debt management plan with ACCC. With this low-cost service, we work with you to set a budget you can live with while you pay down your debt, and we actually pay your bills for you to make sure they are paid on time. All you need to do is write one check each month to us. We'll also work with your creditors to try to get your interest rates lowered, finance charges forgiven, and to have your accounts re-aged so they are current.