If your total credit card or personal loan balances are $25,000 or higher, then chances are good you are paying hundreds of dollars every month in interest! So what can you do about it? More than you might think. We’ve listed three surprising ways you can pay off $25,000 in debt.
Depending on your interest rate, it could cost you $500 or more just to make minimum payments. Also, it could take you decades to pay off the principal. While making minimum payments will keep you in good standing with the creditor, have you ever wondered why?
Creditors Make Huge Profits on Minimum Payments!
Creditors love minimum payments because it makes them a lot of money and keeps you paying them as long as possible–often doubling or tripling the debt in the process.
When you make minimum payments to your creditors:
- Only a part of your payment goes toward the principal balance
- It can take decades to pay off high balances
Only a part of the minimum monthly payments goes toward paying the principal balance. Instead, hundreds of dollars go toward interest charges which creditors collect as profit.
3 Surprising Ways to Pay Off $25,000 in Debt
Luckily, you don’t have to resign yourself to an endless cycle of debt. There are ways to pay it down that can help you get out of debt faster and for less money.
- Debt Consolidation Options
- Ask for New Interest Rates
- Debt Consolidation Loans
Debt Consolidation Options
Debt consolidation options can help you pay off your debt faster than making minimum payments and could give you immediate financial relief by lowering monthly payments.
They are a good alternative for people overwhelmed by their debt and considering bankruptcy or other extreme measures. However, you’ll. need to speak to Consolidation Specialist to match with the right option for you and your debt.
How it works
Have a free consultation with a Consolidation Specialist who will match you with an option that is right for you and your financial needs. Enroll and lower your monthly payment by 40% or more on eligible debt.
Why choose this option?
- Consolidate multiple payments
- Options for all credit scores
- Lower month payments by 40% or more on eligible debt
- Pay off debt in 24 to 48 months
- Save on interest
Negotiate New Interest Rates
This method works best for credit cards. If you have a strong history of on-time monthly payments and your credit score is healthy, you maybe be able to ask for lower interest rates.
Credit card companies don’t want to lose your business, especially if you are in good standing with them. Comparing your current APR, grace period, statement due date, and current balance to options available from competitors can be used as leverage with your credit card company.
How it works
You can call your credit card company directly and ask them to lower your interest rate.
Be prepared with information about your current credit card terms and use this knowledge to your advantage as you reveal what you’ve found when researching competitor lenders.
Why choose this option?
- You have credit card debt
- Pay off the principal balance faster
Debt Consolidation Loans
If you qualify, you can pay off and consolidate existing debt with a new loan that has a lower interest rate than current accounts. Paying off a new loan with a lower interest rate will save you money and help you pay off the principal balance faster.
How it works
You apply for a loan for the amount you owe on your existing debts, and once approved, use the funds to pay off your debt balances. Then you’ll pay down the new loan over time.
Why choose this option?
- You qualify for a lower interest rate
- Consolidate multiple payments
- Pay off the principal balance faster
Top Company for Paying Off $25,000 or More
Debt Consolidation Options
✓ Lower Monthly Payment
✓ No Credit Score Limit
✓ Debt-free in 24-48 months
✓ No fee to apply
✓ A+ Rating with BBB
What Debt Payoff Solution is Right For Me?
The right solution to pay off your debt will be unique to you and your needs. Do you have poor credit? Is getting out of debt fast your top priority? Asking yourself these important questions and talking to a Consolidation Specialist can help you decide which path is right for you.