February 15, 2021
Fast Cash From Title Loans Can Help You Get Out of Debt
Do you find yourself barely staying afloat in a never-ending pool of credit card debt? You’re not alone. According to the 2020 Experian Consumer Credit Review, the average American carries $5,897 in credit card debt, and this number is set to rise. Maybe you needed fast cash or quick loans to pay off an unexpected expense. Maybe you made too many purchases over a short period and now you find yourself in what feels like crippling debt. If this sounds like you, take a look at the tips below on how to get out of debt and into the life you have always imagined for yourself.
1. Calculate Your Current Financial Situation
Determine how much debt you have. For many, their debts have been towering over them for years and are now so scary that they don’t even want to know how much there is. Like the monster under your bed, you need to look it in the eyes and see it for what it is. Understanding how much credit card debt you have is the first step in formulating a plan to get yourself out of debt.
2. Pay Off the Highest-Interest Cards First
Determine which of your credit cards are charging you the most interest and pay those down first. It’s a common misconception that when paying off credit card debt, you should put a little money towards all of your cards at once. This is incorrect. What you need to do is determine the cards that are charging you the most interest and pay those off in full. Continue to make the minimum payments on the other cards with lower interest rates while you pay off your high-interest rate cards in full. This will save you money in the long run.
3. The Balance Transfer Dance
While you’re paying off your high-interest credit cards, look into other credit card companies that are offering 0% interest on a balance transfer for a designated amount of time as part of a promotion. Transfer the balances with the lower interest rates to this new card while you’re paying off your high-interest cards so that these lower-interest cards don’t continue to accrue interest.
4. Debt Consolidation
Think about a debt consolidation loan. Most banks and credit unions offer a debt consolidation loan, which is an unsecured loan that allows you to bring all of your credit card debt into one loan with one easy payment (and, in turn, one interest rate). Loans for bad credit are often hard to get, though. The interest rate on these loans can still be relatively high, but it will be lower than your credit card rates and will help you stay organized by having everything in a centralized location.
5. Apply for a Title Loan
Another option to consider is a title loan. Title loans allow you to use collateral you already have on-hand – your vehicle – to borrow against and take money out at a much lower rate than an unsecured loan. The reason for the rate being lower is that it’s secured by the vehicle should the loan be defaulted on. If you have a vehicle that you own free and clear, or have equity in a vehicle you own, this is a good option to look into. You can borrow the money to pay off your existing credit card debt and then slowly make payments on your new loan at a much lower rate, getting you out of credit card debt and saving you money over time.
Take it One Step at a Time
Give yourself some grace. Getting out of credit card debt can be a lengthy process and can take time. It’s important that throughout this process you stay patient and continue to be kind to yourself. People get into credit card debt for all kinds of reasons, such as unforeseen emergencies or just a lack of understanding of how credit cards work. The important thing now isn’t how you got here; it’s that you’re taking the steps to get yourself out. Take the process day by day and take pride because you’re finally taking control of your credit card debt and control of your life.
If you’d like to look into your loan options further, Select Title Loans in Florence, Alabama offers title loans for people in many situations – both people with good credit and loans for bad credit. Select Title Loans specializes in getting you your cash fast so you can be well on your way to creating the life you have always dreamed of. Start today by filling out our online application.