How to Use Personal Loans to Pay off Massive Credit Card Debt

If you have massive credit card debt, you should know that you're not alone. Millions of individuals around the world are suffering with overwhelming credit card debt that is threatening to pull them under. If you're looking for a solution, here is some information on how to use personal loans to pay off massive credit card debt.
  
Instructions:

1.  Gather All Credit Card Bills. The first thing you need to do is gather all of your credit card bills so you can determine exactly how much money you will need to pay off your credit card debt. Make a list of each credit card, the balance owed on the card and how much the interest is. Once you have gathered every single bill, add up the balances so you will know exactly how much credit card debt you have.
      
2.  Speak with Your Bank or Credit Union about a Personal Loan. Depending upon your credit history, loan history or debt to income ratio - you may need collateral for a loan. Speaking with a representative of your local bank or credit union will help you determine whether this is needed or not. Explain to them how much you need and what you can offer as collateral if needed. When you are told how much you are approved for, you can further determine how to use the money to pay off your credit card debt.
      
3.  Create Priorities. You may or may not be able to receive a loan that is high enough to cover all of your credit card debt. If not, you will need to create priorities. Look again at your list of debts and pay special attention to the cards with high interest rates. They should be paid off first. Pay off the credit cards that you can - paying the highest interest cards first. This will help you save money in the long run. You will have only one payment (the loan) rather than several and most likely it will be a fixed rate rather than a variable one.

4.  Pay Off Your Credit Cards. Now that you've determined which credit cards to pay off, or if you will be paying them all off, you need to do a few extra things. Send the money in a money order or check so you will have proof of the transaction. If possible, send the money certified mail so you will receive a receipt when the mail has been signed for and delivered. Also, send proof of the payoffs to all three major credit bureaus. These are TransUnion, Equifax and Experian. This will help insure that the information makes it onto your credit report and that the credit bureaus are aware that you've paid the debts off.
      
5.  Cut Your Credit Cards in Half. Okay, so this is an optional step, but it's important to learn how to manage credit cards. It's all to easy to end up overwhelmed by credit card debt again and be back in the same situation you were in to begin with. Consider credit counseling or something similar to empower you and give you knowledge about credit concerns.

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Consumer Debt Relief Tips

Relieving yourself from consumer debt will allow your money to grow.

It doesn't take long to get into debt, but trying to pay off consumer debt can be overwhelming. Being in debt creates stress and frustration and prevents the consumer from living life to the fullest. There are strategies to help those in debt begin to pay off credit card balances and to avoid consumer debt in the long run.

Pay Down Debt

It is important to stop using credit cards when you are trying to decrease your debt. Pay as much as you can on the card that holds the highest interest rate and pay the minimum balance on all other cards. When that card is paid off, use the same method on the card holding the next highest interest rate. This strategy protects your credit score and allows you to feel success as each card is paid off. If you do not have extra funds to begin paying down your debt, consider taking a part-time job and use your paychecks exclusively for paying off debt.
   
Debt Negotiation

Another strategy is debt negotiation. Contact creditors in person or by phone to try to get interest rates lowered on the high-interest balances.  You may qualify for this if you can prove you are currently facing a financial hardship. Creditors do not have to lower their rates, but it may be in their best interests if it allows the consumer to pay off the balance.
   
Debt Consolidation

Consolidation combines smaller debts into one larger loan with only one payment per month. Debt consolidation turns unsecured debt into secured debt. The debt becomes secured by the consumer's property, which may be seized if the consumer fails to pay.
   
Credit Counseling

Credit counselors assist those in debt to develop budgets. They advise on managing money and may provide follow-up workshops or other sessions.  It is important to research credit counselors carefully and not to do business with anyone who charges high fees. You do not want to get further into debt.
   
Adjust Attitude Toward Spending

Think about the underlying causes of getting into debt. Are you spending as a form of recreation or to make yourself feel better? Once your debt is paid off, you do not want to adopt the same spending pattern as before. Living within your means is healthful for your bank account and for your emotions.

For Lower Interest Credit Cards & Balance Transfer Credit Cards, 
Visit: www.CherokeeFinancialInc.com