Do you feel like you’re just one or two missed payments away from being buried in debit and credit card bills? If so, then this guide is for you. The post will show you how to avoid the trap of accumulating debt and get out of the mess with some quick tips that anyone can use. Though, if you are already in huge debt and are looking for the best ways out then, a debt settlement loan from Canadian Cash Solutions is the right thing for you.
The advice within may not be able to rescue you from impossible credit card debt, but it’s a good start! With that in mind, let’s get started.
To start, you’ll need a credit card. You can get one from any credit card company. We don’t recommend using the card for money, but rather to track your spending. This will make it easier to see exactly what you spend your money on and which accounts you owe the most money to. Just be sure to set up an account with 1 -2 months of purchases so that you know how much is left in your available cash after paying credit card bills.
Once you have a credit card, cut yourself off from all other accounts so that you can focus on building up your new one. No other accounts should be opened until the new account is established and running fairly smoothly.
Now you want to close out all your old accounts. Go through what you owe, how much it is, and if any of the accounts are paid off. To determine how much to have left, have a list of all your remaining balances for each account. The first thing that should come out is whether or not you’ll be able to pay the bill in full or if there are some other methods that could be used to get clear.
You should also determine how long it’s going to take for you to pay off each account before it’s closed completely. It should be mentioned here that closing an old account won’t mean that it will automatically stop showing up on your credit report. As long as you still owe money to the account, it will still appear on your credit report.
However, this doesn’t mean that it will show up as a paid-off account. If an account has all its payments sent to another bank or closed within 24 hours of opening, then it’s likely to disappear from the credit bureaus. The reason for this is that creditors are typically unable to collect their debts after accounts are closed. This results in them reporting the accounts as unpaid instead of paid off. If they mark the debts as paid, it can lower your credit score.
One good way to close an account without affecting your credit is to make a minimum payment on the card. For example, if you owe $100 and only show the account as $50 in debt on your report, then you’re able to keep the account open and pay it off with a small monthly payment. After a few months of doing this, it’s likely that the creditor will remove all accounts with any remaining balances due from their system. This is because they don’t have any way to collect from you anymore so they’ll begin reporting unpaid debts instead of paid ones.
If you can’t pay off your old debt, then it may be best to attempt to negotiate with the creditors. They will likely try to convince you to make a large payment by taking advantage of your situation. Just remember that all they want is money, so they may agree to take less if you agree not to contact them again.
Some creditors respond better than others, so you shouldn’t hesitate to haggle with them if it means saving money! As long as the creditor is willing to let go of some of the money they’re owed, then it’s safe for you to try calling back and asking about an account consolidation loan or a debt settlement loan.
If the creditor is unwilling to work with you, then it’s best to start thinking about closing the account. The creditor will either accept a lump-sum payment or make reduced payments, though it’s unlikely they’ll let you pay them over time. This can be helpful if you know that you won’t have much income during the next few months. However, this may not be an option due to the fact that you’re trying to pay off your debts as soon as possible before any interest starts accumulating.
Once the account has been closed, then you should look into what options are available to help you get out of debt quickly before any additional interest begins accumulating on your balances.
Credit Counselor Funding offers some great options to get clear. First of all, you’ll be able to get started with an account online. There will still be a small fee, but it’s less than funding through most other methods. Once the funding is done, they will issue you a check out for $30. It’s still best practice to pay this check within 20 days so that there aren’t any late fees. If you want, they can send you your check by mail with the account number included on the address label or you can go in-person and pick it up at any one of their locations across the country.
On top of this, you’re able to request an online account to check your payments daily. This is a good way to keep yourself accountable for the next couple of years. They also offer counseling services that can help you avoid or reduce any future debt that may arise within the next few years.
Once you’ve used up your first check, then they’ll send you another one out once the current one has been cashed. You’ll have 30 days to pay it off before it starts accruing any late fees. This process is quite simple and will work for anyone who’s struggling with debts. It may take you 6 months to 2 years to get out of debt, depending on how much you owe and the amount that’s able to be paid off with each check.
While some people can pay more than one account at a time, this isn’t likely the best method. It will take you longer to get clear of your debts if you’re dealing with more than one at a time. To make it easier on yourself, try focusing on one account before moving onto the next.
Conclusion :
Taking on multiple accounts is difficult, but it doesn’t mean that it’s impossible. If you are determined enough, then there are some possible methods for consolidating debts out of which one is a debt settlement loan. However, it’s important to understand that taking on any more debt is probably not a good idea. In fact, by taking on multiple debts at the same time you will likely make your situation worse. This is true whether you’re looking at your credit cards or other types of debt.
If you need help getting out of debt, contact Canadian Cash Solutions today. They can help you get started with a new financial future without having to worry about your past debts getting in the way.
