How Can I pay off my credit card deb?
Paying off your credit card debt may not be as complicated as it seems, however, we recommend you to do it as soon as possible for this reason…
Giving is something that not all cardholders give the necessary seriousness to, when it should be a matter of great care, because, after all, it is our money that is at stake.
Unfortunately, not all users plan their purchases carefully, thus acquiring debts that last longer than they would like or, even worse, without the possibility of meeting them.
If you are familiar with the above, then you have just come to the right place, because in the following paragraphs we are going to tell you how to pay off your credit card debt (even if you have already stopped paying), so that you can save money, in terms of interest, and become a candidate for another loan.
Not paying the cards has its consequences
And it all lies in the bad credit history that you will end up generating in Credit Bureau. Keep this in mind: not paying your credit cards will close the doors not only to obtain new credits (such as car or mortgage loans), but also to contract cell phone services, internet, etc.
In addition, this could affect your future job opportunities, as it happens today in the United States, your credit history could be reviewed by companies when applying for a job.
So, if the impossibility to pay is real, we recommend you to act immediately.
I have not stopped paying, but I want to end my debt as soon as possible, what do I do?
If your credit history is not yet “stained”, there are 2 options that we recommend you consider to pay off your credit card debt quickly and, at the same time, save interest:
- Fixed payment plan: generally, banking institutions offer to transfer their users’ debts to fixed payment plans and at lower rates than those established in their contracts. This option allows users to save money by financing themselves with an interest rate, since they do not pay extra interest, something that would not happen with the original rate of their plastic.
- Personal loan: Personal loans are financing that are normally offered to people with good credit history. Companies such consider the good payment behavior of their clients to grant loans at lower rates than those offered by banks.
What if I have already stopped paying, is there a solution?
To be honest, you will hardly get financing with any institution, however, there is still a way to repair the damage: negotiate the debt with your bank.
Seeking an agreement with the bank is a viable option to get a discount applied to the debt and, in this way, pay it off completely. However, many times this cannot be achieved due to the applicant’s lack of experience.
To solve this problem, there are Credit Repair Companies, which operate as an intermediary between the bank and the user. These types of companies, being experts in the subject, are able to obtain better payment plans.
The services they offer are:
- Handling of collection calls
- Negotiation with banks and/or department stores to reduce up to 70% the amount of the original debt and with a realistic payment plan.
- Advice from an executive who will help you establish a plan to become creditworthy again.
Are you going to negotiate? Then you should know this…
The agreement to eliminate your debt with the bank will be called “Quita” (term used by financial institutions) in the Credit Bureau and, from the date you finish paying, 6 years will be left for that record in your credit history to be erased.
How easy is it to obtain another loan if I paid off my debt with “Quita”?
Once the debt with the bank is finished, the credit repair companies offer their clients reintegration to the credit world through their own financing or by transferring them to a SOFOM, which grants personal loans (based on the user’s payment capacity) to increase the Credit Score and be considered again by the banks.