Tuesday, 7 April 2020

How To Pay Off Credit Card Debt Using Personals Loan

If you are a person that has a lot of debt and you want to get rid of it but you just seem not to have enough money to get rid of those credit card debts. I am going to show you how to use personal loans to pay down your debt, and the first thing that I want you to do, if you are a person that is dealing with personal debt, there are four things that you need to do right away that is going to boost up your income so that you can start having more money to pay down your debt.

1. File Exempt

You can do this for 4 to 6 months. What happens within that 4 to 6 months to file an exempt. That means you are not paying any taxes, so dollars are kept into your paycheck so that you would have more money to increase your income to stat helping you pay down your debt.

2. Stop All Retirement Plan

Stop investing in your retirement plans. Just temporarily, the reason is again you need as much money as you can to start helping you pay down your debt. 

3. Defer A Payment

If you have a car payment you may want to reach out to your car dealership and see if they will defer a payment. Maybe that is going to help you if you are able to defer car payment, then like I said if you have tax payment instead of using that money to go on a trip or whatever, contact utility companies and try to pay your utilities up for 6 months or even a year. The reason is that when you have more of your paycheck you can dedicate to paying down your debt and you don't have to worry about your light, gas, water, Those basic household bills for at least 6 months to a year. That helps gives you more leverage.

4. The Debt Snowball

That is where you go from your smallest bill to your largest. So you have a $50, $100, and a $200 bill, you will pay down the first one which is the $50 then you take that money and apply to the second one while you are still making minimum payments. What happening is that your credit score is increasing as well. Once your credit score gets to about 680 to 690, then you can start applying for credit cards that have zero interest 

Those credit cards that have zero interest, those other high-interest rate credit cards, what you want to do, you want to transfer the balance over to those zero-interest credit cards. Now you are not paying a whole lot of interest anymore, you just pay on the balance of the credit card. That is what you want to do.

Let's talk about the Personal Loan

If you have decent credit or like some of the lenders that are out there, they don't care about your credit. They just care about if you have the ability and you have a low debt to income ratio to get qualified for a personal loan. But if you are able to get qualify for a personal loan, then you will probably use that personal loan to consolidate some of that credit card debt. If you have a multiple credit card debt that you have pay and worrying about missing, you can just take the loan to pay off those credit cards and then just focus on paying back that personal loan. 

  • To get money in your pockets right away, you want to file exempt on your taxes, not paying taxes between 6 months, then stopping all retirement plans, stop it all just temporarily so that you have enough income that you can start paying down your debt fast. 

What happens after you stop paying taxes is that you will usually get a high tax return at the end of the year. But at the same time, you are out of debt. 

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