What is the best way to pay off credit card debt?
The Bees Knees asked:
I’ve heard of companies like cureadebt.com that will settle your credit card debts for 70% of the amount owed. I’ve also heard of government grants to pay unsecured debt(credit cards), but I don’t know where to get the info on them. I’m considering a second mortgage to pay these off with a lower interest rate. Thoughts?
I’ve heard of companies like cureadebt.com that will settle your credit card debts for 70% of the amount owed. I’ve also heard of government grants to pay unsecured debt(credit cards), but I don’t know where to get the info on them. I’m considering a second mortgage to pay these off with a lower interest rate. Thoughts?
We no longer use credit cards, so the balance only increases because of high interest rates.
There is no government grant at this time to help with credit card debt, that is simply advertising. The companies promising that high of a settlement on all of your debt are bait and switch programs- SOME companies will settle for that and even higher- yet some companies will settle for 55%. The industry average is 62%. I highly suggest only going with a company that sets aside 50% in reserves for your settlements- this is just a much better and pro-active way to get you out of debt the fastest way. I would never suggest taking out a second mortgage to handle your debt. It is not advised to ever secure unsecured debt- you have options with debt that is not secured to anything. When you secure it against your house- and money gets tight- now your house is on the line!