Monday, 14 January 2019

Debt Consolidation Advice To Get Out Of Credit Card Debt Fast

What we are to talk about today is collateralizing debt, that may sound like a fancy term, but it's essentially a way of saying hey let's pay off our credit card debt really quickly, build up our credit score and save a lot of money really quickly. So it's all good stuff and it's really easy to do

If you ever saw those advertisements for 5 Tricks To Pay Off Credit Cards Faster or 1 Secret The Bank Don't Want You To Know About. I don't ever watch that stuff so I have no clue what they are talking about maybe this is it but this is my version, my secret of paying off credit card very quick or lowering your interest rate very quick on your credit card debt. The whole thing about this article is that credit cards, personal loans, lines of credit are all called unsecured debt and therefore the interest rate is very high. Whereas like a house or a car, there's something backing up that loan like a car title or the deed to the house and that makes those interest rates lower because there's less risk to the bank 

  • There's something real about that debt so a lot of people find themselves you know they've got their car loan let say 3% and they got their credit card at 15%, the thing is most people just go on for their entire lives paying as it's 

What I try to do every single day at work in order to save people as much money as I can is I let them know this. Why have credit card debt? If you have a vehicle loan that's at 3% because what a lot of banks will do is they will transfer that debt off of the credit card and on to the car loan. This can happen when you refinance, it can happen when you are buying a car, there are so many opportunities to do this, people need to start taking advantage of this because this will save so much money

The way it works is this

Let say you've got a car loan that you have financed somewhere and let's pretend that you owed $10,000 on it, and maybe it worth $15,000 maybe you have got this car loan for a couple of years and you've had a chance to build equity. Then you've also got this $3,000 credit card and it's at 15% well what you can do is say look bank I would actually like to add $3,000 to my car loan I want to increase the size of my car loan, whenever they're adding money to your car loan they're going to put that same dollar amount into your saving or checking account and what you do with that money is to just go pay off your credit card

Simple as that, so your credit card goes from you owe $3,000 to you owe nothing. Your car loan went from $10,000 owed to $13,000 owed but now your $13,000 worth of debt is all at a car loan interest rate, you don't have to worry about that 50 percent credit card anymore it's done so you save money because your interest rate went down and more likely your credit score is going to go up because of your capacity ratio. If you think you've got equity in the vehicle but you also have some unsecured debt try and transfer it over, honestly this is soo easy to do and can have such a big impact


That is what I want to share with you today, I hope you understand this article because it might seem complicated, if you read it very carefully you will get the idea

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