If you are struggling to manage your personal expenses and debts, it is necessary to look into potential solutions that might make payments a little easier to handle. We offer solutions that will help your situation, particularly when your goal is paying off that personal line of credit so that you have one less high interest debt to worry about.
Options to Pay Off a Line of Credit:
Understanding the options available to pay off the personal line of credit is the first part of making a plan to get out of debt. While a few key options are available, three main methods of getting the situation under control are the most common solutions. The three options include debt management budgeting plans, consolidation services and settlement of the account.
The best method for any individual situation is variable, but in most cases,consolidation or settlement offer the best methods of getting the personal line of credit under control without serious financial consequences. When you are struggling with your expenses and debt payments, a budgeting plan is usually not enough to get back under control.
The problem with budgeting is that it will not change the interest rate or the principal payment. As a result, you will continue struggling to try keeping up with the unaltered payments. This is not an effective way to pay off the line of credit because it will take several years to get the situation under control.
Consolidation via negotiation services is one of the two best solutions to pay off the personal line of credit. Consolidating through negotiation means working out a reduced interest rate with the creditor. Some services strive to help you get a reduced interest fee on your personal line of credit so that the monthly payments are dramatically reduced.
Since monthly payments on a personal line of credit include interest charges, added fees and a small portion of the money owed, keeping the original payment plan will ultimately result in paying more than necessary for the debt. The interest and fees are the first priority of the lender, so the final payment is primarily the added charges on the account.
By working out a reduced interest rate , you will find that the total payment is ultimately a little easier to handle and more of the payment is going to the borrowed amount rather than extra charges. That will make it easier to pay off a personal line of credit at a faster rate.
Settlement is the second service that you could try. Like consolidation, settlement works through professional negotiation. The key difference is that our team of professionals strive to reduce the total amount owed to the lender and thus pay off the full amount of the loan within a short period of time.
Settlement negotiations start with determining how much it is possible to pay on your line of credit. We start with looking at the financial situation and determining how much is possible to save within the typical time period negotiations will require. Over that time, the savings add up to make the full payment of the settlement agreement.
After determining the maximum payment that is possible, negotiations with the creditor begin. Negotiators will make an offer for the settlement that is below the estimated maximum and wait for a response from the lender.
After the lender makes a counter offer, the bargaining begins. Your personal line of credit can take 24 to 48 months to completely settle and the funds set aside for the settlement are then used to pay the entire agreed upon amount.
When settlements on the account are complete, the debt is considered paid in full and it no longer requires paying a monthly amount. This will ultimately result in helping solve your financial difficulties so that more funds are available for needed expenses.
Paying off the Line of Credit:
The final part of any negotiation service is actually paying the settled debt. In a settlement situation, the payment is made in full after the negotiations are completed. The funds are saved up through a payment plan according to the amount it is possible to put aside each month so that the final payment is possible.
In consolidation, a monthly payment is made based on the reduced interest charged. This will help the situation and ultimately leads to faster repayment, though it will take a couple of years in most cases to manage the full amount.
Repaying a line of credit is not always easy due to the high interest rates. Fortunately, you are not alone and we can help get your situation under control. Call us today for a free debt analysis or simply fill out the form to find out more information. We are ready to help you pay off your unsecured debts.