Although you may be struggling under the weight of your credit card debt, there are ways to use your debt to your advantage. With multiple debt management companies and credit card corporations vying for control over your debt, you can essentially sell the money you owe, which means you end up paying less in the long run.
Ask your credit card company to lower your interest rate. According to MSN Money columnist M.P. Dunleavey, negotiating better terms is one of the best ways to consolidate your debt. Because credit card companies know that you can sell your debt, taking it elsewhere, they are often willing to give you a lower interest rate if you continue to give them business. To negotiate, simply call the customer service line.
Get a personal loan. Credit unions often give low-interest personal loans that you can use to pay off your credit card debt, according to Dunleavey. This also gives you the potential to sell the credit you have with large corporations to a smaller, local company, with which you may feel more comfortable working.
Take out a secured loan. Sell your unsecured credit card debt to the company that provides your home or car loan. Secured debt comes at a much lower interest rate than most credit card debt. By refinancing your automobile or home, you can pay back the money you owe at a lower rate.
Use credit counseling services if you are behind on your payments. According to CreditCards.Com, debt collection businesses, which often have incorrect contact information for debtors, can buy delinquent credit card debt. Because of this, many debtors receive no notification that they are being taken to court over bad debts, according to CreditCards.Com. By using a credit counseling service, you can sell your delinquent debt before the credit card company does. And because for-profit and non-profit credit counseling groups are professionals who deal with credit card companies on a daily basis, they might be able to help you reduce how much you owe or your interest rates.
- Credit Cards.Com: How Credit Card Debts are Bought and Sold
- WalletHub. "Credit Card Debt Study." Accessed Sept. 26, 2020.
- CreditCards.com. "Average Credit Card Interest Rates: Week of September 23, 2020." Accessed Sept. 26, 2020.
- Chamber of Commerce. "Credit Card Debt by State." Accessed Sept. 26, 2020.
Miranda Morley is an educator, business consultant and owner of a copywriting/social-media management company. Her work has been featured in the "Boston Literary Magazine," "Subversify Magazine" and "American Builder's Quarterly." Morley has a B.A. in English, political science and international relations. She is completing her M.A. in rhetoric and composition from Purdue University Calumet.