Dealing with excessive credit card debt is challenging, but you can recover with a good strategy. Recovery will most likely not happen overnight, however. Thus, you will need to take a deep breath and understand that you won’t make a massive dent in your debt initially. The following are some tips for dealing with excessive credit card debt.
Apply for a Debt Consolidation
Dealing with excessive credit card debt can be a little easier if you get approved for a significant debt consolidation loan from a private lending company. A consolidation loan will cover all your current open loans. It will also offer a much lower and more manageable interest rate than what you currently have. It’s an excellent option because it can give you the organization and a slight discount you need to get caught up with your bills.
The downside to these loans is that they often go by credit score. Therefore, you may not qualify for one if your score has suffered because of your overwhelming debt. You can try finding a high-risk lender that will help you, but your interest rate might suffer because of it. Still, having an organized pay schedule might be worth it. Instead of paying numerous creditors, you will have only one bill to pay each month. That should make your life at least a little bit easier.
Hire Professionals to Help You
Sometimes dealing with excessive credit card debt requires you to have people in your corner who can tell you which moves are the smartest ones to make for yourself. These are some of the professionals you should have in your life while you’re trying to bounce back from being buried in debt:
Credit Counselor
A credit counselor is one of the first people you should consult if you have an issue with overwhelming debt. This type of provider can look at your credit profile and give helpful suggestions to help you manage it more effectively. He or she can also assist you in developing a strategy to make your payments consistently. If you sign up for a new debt management plan, your credit counselor will also help you negotiate with your creditors to get your balance down a bit.
Accountant
An accountant is always good to have in your life, but you will only need this type of provider if you run a business. Otherwise, you can get by with unofficial advisors who can steer you the right way and give you any helpful advice they have about how they succeeded in conquering their debt.
Tax Preparer
You will need advice from a tax preparer on how to do your taxes and reap the most benefits. This provider can help you save thousands of dollars each year and reduce the amount of money or back pay you owe to the IRS.
Investment Expert
An investment expert is another person who can assist you. This person can help you make a few smart choices with your money to land you extra cash. You’ll talk to this person if you’re thinking about putting some of your money toward growing something you can use to cut down your bills.
Accountants or an accounting firm can help you manage the money you gain from your investments.
Sell the Things You Don’t Need
Spring cleaning is a good method for dealing with excessive credit card debt. You can go through your garage, shed, closets, and other areas to look for items you no longer use or need. You can get rid of these items and liquidate them for cash using a number of methods. These are some ways to get money for them:
Have a Yard Sale
A yard sale is an excellent idea because you don’t have to go for or do much work. You can set your items up in the front yard and allow people from the neighborhood to rummage through them when they visit. They’ll offer you money for those items, and you can get cash on the spot.
Go to a Flea Market
You can also rent a table at a flea market if you would rather take your things to a setting like that and let people find them. You may be able to swiftly sell some of your items there. The only downside is that you will have to pay to rent a table at the flea market, but it should be no more than $20.
List in the Online Classified Ads
The classified ads are another place you can list your items for sale. Alternatively, you may consider using social media sites with marketplaces now. The idea is to get the news out so that someone will make you an offer and take the items out of your hands. You can use resources that seem reasonable for you to use.
Visit a Pawn Shop
You’ll probably be better off saving your jewelry for a pawn shop than you will trying to sell it at a yard sale or lead market. You can get cash for jewelry from a pawnbroker with a keen eye for gold.
Get Cash for Junk Cars
Getting rid of a true junk car can be a perfect start to dealing with excessive credit card debt. You can use several methods to find buyers for your junk car. One method is to put a ‘for sale’ sign on it and wait for someone to contact you. The second method is to take numerous pictures of it and then list it online for sale.
You can also contact a junk car buyer. Junk car buyers are excellent choices because they take care in any condition. It doesn’t matter whether your vehicle is currently running or not. A reliable junk car buyer will offer you something for it, and you can use those monies to pay off some of your debt.
You can begin your process by calling the organization on the phone or completing a short form with information about your vehicle. You’ll receive a quote, and then you can choose whether to accept that quote or not. If yes, someone will come to your home and put the money in your hands in exchange for the vehicle. From there, you will simply use your money to pay any debt you see fit to take care of.
Get Counseling for Issues
Sometimes, life’s problems and stressors can demotivate people. Thus, you might not be as vibrant or energetic as you once were, and dealing with excessive credit card debt can be tough. Maybe your efforts to get out of debt have been weaker than they should be. These types of counselors can help you to put some spring in your step again, and you should consider talking to one of them:
Family Counselor
A family counselor can assist you if you are having problems in a personal relationship or you’re going through something like a divorce. This person can assist you if your family dynamic is changing as well. Consider setting up a family counseling appointment if any of your home life dynamics are challenging to handle.
Career Counselor
A caring counselor can help you if you feel like you might be in the wrong occupation. This individual will assist you in finding a carer that might be a better fit for you. It’s worth a try if it will improve your income.
Mental Health Counselor
A general mental health counselor can assist you with various woes and worries. You will see this type of specialist if you suffer from standalone depression, anxiety, apathy, or something different. Seeing counselors can be an immense help in terms of dealing with excessive credit card debt.
Sign up for Credit Insurance
Credit insurance is something to consider when you’re dealing with excessive credit card debt. Some credit card companies have programs that allow cardholders to pay a little bit of extra money to have insurance. This special insurance covers the bills if the cardholder ever becomes unemployed, disabled, overwhelmed, or in some other unfortunate circumstances.
It will allow you to get back on your feet, so you don’t become overwhelmed. Look into it and see if you can sign up for a policy. Check with your other credit card companies to see if you might already have such a policy, and activate it while you’re struggling.
File Insurance Claims for Losses
Now is not the time to act wildly shy about calling in insurance claims. If you are legitimately struggling because of something an insurance claim can fix, there is no reason you can’t get the help you need. For example, file a claim with your vehicular insurance company if you can’t get to work because you got into an accident with another driver.
The insurance company will investigate the complaint and pay some money to help you fix your car if your claim is legitimate. It only takes a few seconds to call in a claim or complete an online form opening a claim. The worst they can do is fail to pay your claim, which rarely happens. If the insurance agency agrees to take care of the claim, you can at least get back to having a reliable car that can take you to work, where you can earn money to pay down your debt.
Get Help With the Rent
Sometimes, the rent and essentials can be so high that you don’t have much left over for dealing with excessive credit card debt. Credit card debt then becomes overwhelming because of the interest and miscellaneous payment dates.
It might even seem like you’re struggling just to pay the minimum, only to have the interest payments disintegrate those payments right away. Getting some help with your rent for a few months can save you some money and allow you to pay down some of your most challenging debts.
You will need to do a tiny bit of research to find a rent relief program. You may be able to sign up through your county or municipality for a program that will aid you in paying your rent a few times. Likewise, there may be some charitable organizations in your area that will help you by offering you rental assistance.
Churches and other non-profit locations might be willing to help you as well. The more months you can get assistance, the more of your debt you can eliminate. Your best bet would be to pay as much as you can while you’re getting that assistance. That’s a great tactic for dealing with excessive debt.
Take out a Pawn Loan
An auto pawn loan might be a good way of dealing with excessive credit card debt. You could get a significant amount of money using the value of your car, especially if you have a newer vehicle in your possession. A pawn loan is a short-term advance that providers give people who own vehicles.
These companies offer advances for terms of 30 days to 12 months, and the duration depends on the lender. Most auto pawn loans fall into the 30-60 day range. However, other auto pawn lenders are more likely to extend them out further in an installment loan fashion.
To receive an auto pawn loan, you must have possession of the title to your car as well as the legal right to put the vehicle up for collateral. That means you can allow the title company lender to place a lien on your vehicle so that they can repossess it if you default on the loan.
Someone will assess the value of your vehicle and inspect it for damage and missing items that might decrease that value. You will then receive a loan estimate based on a percentage of the value of your car. You’ll receive a lump-sum distribution if you agree to the loan terms and sign the forms. You can then take some of that money and use it to pay debts. You’ll most likely repay the auto pawn loan monthly until you are finished paying for it.
You now have a few golden strategies for dealing with excessive credit card debt. Use the tips mentioned above to climb out of the depths of debt. You will see the other side, eventually.