Debt consolidation companies argue that borrowing money at a low interest rate to pay off loans or credit cards at a higher interest rate can save you money, or help you pay off the debt sooner. Other advantages include having fewer payments to make each month, and less likelihood that you’ll be late on payments.

Debt settlement companies negotiate with creditors to reduce what you owe, mostly on unsecured debt such as credit cards. Settlement offers work only if it seems you won’t pay at all, so you stop making payments on your debts. Instead, you open a savings account and put a monthly payment there.

Debt ‘consolidation’ programs Businesses that bill themselves as debt consolidation companies, like Freedom Debt Relief and National Debt Relief, in fact sell debt settlement programs that require you to stop paying your bills and instead make monthly payments into a separate savings account.

Debt consolidation involves taking out a new loan to pay off several older debts. When you file chapter 13 bankruptcy, you’ll have 3 to 5 years of protection from creditors while you pay off your debts, but your credit rating will suffer and you may have difficulty getting a mortgage or lines of credit in the future.

seven years

Once you’ve consolidated your debt, keep your credit card accounts open, but stop using all of them. You can lock them away somewhere safe, or even cut the cards up. Whichever way you decide to do it, ensure you maintain a zero balance on those credit accounts.

Cons to paying off old credit card debt

• “Resetting the Clock”
• Getting Your Debt Charged-Off.
• “Paying” for Credit Mistakes Twice.
• Stopping Debt Collectors.
• Looking Beyond the Credit Score.
• The Chance to Improve Credit.
• Removing a Charged-Off Debt That’s Been Repaid.

How to pay off $30,000 in credit card debt

1. Step 1: Take stock of your credit card debt.
2. Step 2: Budget and strategize.
3. Step 3: Create goals and a timeline.
4. Step 4: Implement your debt management plan.
5. Step 5: Make adjustments as needed.
6. Personal loan for credit card debt consolidation.
7. Home equity products.
8. 0% APR card.

How to Pay Off $15,000 in Credit Card Debt

1. Create a Budget.
2. Debt Management Program.
3. DIY (Do It Yourself) Payment Plans.
4. Debt Consolidation Loan.
5. Consider a Balance Transfer.
6. Debt Settlement.
7. Lifestyle Changes to Pay Off Credit Card Debt.
8. Consider Professional Debt Relief Help.

5 options to pay off debt

1. Consider the debt snowball approach.
2. Tackle high-interest debt first with the debt avalanche approach.
3. Start a side hustle to throw more money at your debt.
4. Do a balance transfer.
5. Take out a personal loan.

Here’s the plan:

1. Use Savings to Pay off Credit Cards.
2. Use Savings to Pay Down Final Credit Card.
3. Focus on Final Credit Card.
4. Use Work Bonus to Pay Off Final Credit Card.
5. Use Work Bonus+Snowball for Car Loan.
6. Use Tax Refund for Car Loan.
7. Use the Snowball to Pay Off Car Loan.
8. Use the Snowball to Pay Off 401k Loan 1.

Find an additional source of income to help you pay debts faster

1. Get a part-time job.
2. Work more overtime.
3. Sell some of your things.
4. Rent out part of your house.
5. Set your sights on and work toward getting a promotion.

If a consumer has $30,000 in credit card debt, the minimum 3% payment is $900. That sounds like a lot, but with a 15% interest rate it would take 275 months (almost 23 years) to pay it off and the total after final bill would be $51,222.13.

30k is a very affordable amount to borrow. People still run into trouble borrowing amounts like that because they often make poor choices and get little to nothing professionally from their degrees.

$16,000 Credit Card Debt Calculator Results: It will take 2 years, 9 months to pay off your balance. You will pay a total of $3,581 in interest.

Personal Loan Personal loans can be used to pay off $40,000 in credit card debt, assuming you can qualify for a big enough loan with a lower interest rate than your current credit card interest rate.

Make a Plan to Tackle $50K in Credit Card Debt

1. Reevaluate or Create Your Budget.
2. Look for Ways to Decrease Recurring Expenses and Increase Income.
3. Set Concrete Goals.
4. Ask for a Lower Interest Rate.
5. Look Into a Debt Consolidation Loan.
6. Consider a Balance Transfer Credit Card.
7. Credit Counseling.
8. Debt Settlement.