Get out of debt without a loan
September 6th, 2008 | by abigail |The Credit Crunch is a long way from over yet, household and personal finances are set to suffer a lot more strain. If some analysts are correct The Credit Crunch is going to last at least another 18 Months.
One part of your finances that you could probably save money on is credit cards. Credit card interest accrues daily taking for ever to pay off, it also creates a very dangerous spiral where as your repayments increase your ability to pay essentials like food and clothing decreases, what do you do in this situation? Borrow more on your credit cards.
Then comes the defaulting and charges, people that suffer the short term worst case scenerio of credit card debt are probably the lucky ones in the long run. The rest will be paying off even small balances for many years to come, the best thing you can do with credit cards is pay them off and rip them up.
Problem is theres a credit crunch on and loans are hard to get especially if you’ve already reached the defaulting and charges stage, how can you pay off credit card debt, there are several options available a loan even if you can get one will probably be cheaper in the long run but might not be your best option.
You could try negioting a more manageable monthly payment with your creditors directly or there are companies and charitable organisations that can do it on your behalf, they can also advise on other routes and options available.