How to Pay Off $50,000 in Debt
Debt is a topic that no one truly enjoys speaking about. It’s not a fun subject, so let’s simply dive into the nitty-gritty of it all, with no sugar coating. Here’s the cold hard truth: debt is a crippling and difficult reality that hundreds of thousands of Americans find themselves grappling with every day, especially when it reaches over $50,000. The grim reality is that there is a huge problem of debt across America, and it is a very widespread issue in this day and age.
How do you climb out of the dark hole of debt? What steps do you need to take? Many people find themselves struggling with debt because they simply are too embarrassed to talk about their problems or admit that they need help. It’s important to realize that it is absolutely 100% okay and necessary to ask for help in the first place. So, let’s look at how you can pay off $50,000 in credit card debt.
Debt counseling is a service in which you can work with a counselor to discuss your personal finances. The counselor you work with may suggest a debt management plan or can help negotiate with the creditors that you owe on your behalf. This negotiation can help get you a lower monthly amount or lower interest rate for you to owe, and it can help you pay back some of the money.
Your counselor can also have you send your payments to them, and then they will distribute the money to your creditors. A program like this takes around five years to complete and not owe a debt. Debt counseling can help you if you’re the type of person who doesn’t like to do something alone and to have an expert by your side who is coaching you along the way. It might not be the option for you if you are looking to pay off $50,000 of debt in only 2 years.
Having to pay a lower interest rate or monthly rate to your creditors can help you greatly because that means you owe less money. Your counselor may be able to make it so that the creditors you owe forgive you for less money. It’s also important to note that this process could have a temporarily negative effect on your credit score or bank account, but it is still better than having to file for bankruptcy. To see if this type of service would work for you, it’s important to first put in your time and effort to do some research.
Another method that DebtQuest USA offers to help you is the debt consolidation method. Debt consolidation is when you take out a bigger loan to pay off all the smaller loans you owe. These are secure loans, meaning that you must put something up as collateral when you get a loan. Many people will offer collateral in the form of home equity if they own a house. However, there are countless other things that people will offer as collateral.
The reason why people opt for this method is that it helps to simplify your finances, and it eliminates you from having to consistently focus on juggling multiple payments. We understand that it can be difficult to keep up with multiple payments. Debt consolidation makes it so that you only send payments to a single lender.
Many people use the debt consolidation method as a way to pay off credit card debt; however, you can use it for a variety of purposes. This method can help with personal loans, medical bills, or any other debt that doesn’t require you to put up your property of security. There are many options. This method can help lower the multiple interest rates you’re paying. Debt consolidation helps to make payments a bit more management.
This method might not be right for you, but it’s important to be able to explore the numerous methods and services that are out there to help you. If you qualify for debt consolidation, it might be a great option for you to take when it comes to eliminating your debt.
In 2017, it was reported by CNBC that one million borrowers defaulted on at least one student loan. That is a truly staggering number and a harrowing reality. If debt consolidation and debt counseling are not suitable options for you, you may consider using our debt settlement service.
If you’ve tried to negotiate your debt with your creditors, you know it’s a cumbersome process. It won’t be all that easy to do or understand. That’s where debt settlement comes relief comes into play, and it’s important to note that not every type of debt is eligible for this process. Some forms of debt that aren’t eligible include car service, home loans, utility bills, federal government loans, lawsuits, overdue taxes, or mortgages.
However, there are several forms of acceptable types of loans, such as unsecured debt – debt not tied to any form of collateral (like a credit card or personal loan debt). Private student loans and medical debt also fall into the category of types of loans that would work with a debt settlement program. Now that you have the gist of the types of loans that will or will not work let’s move on to understand more about debt settlement.
Debt settlement works by making a monthly deposit that fits your budget. This amount may be more or less than the amount of your minimum monthly payments on your loans or credit cards. With the principle balance being a bit lower, debt settlement is usually more cost-effective. If you want to pay off $20,000 in credit card debt instead of $50k+, you’ll get a better deal. It is most likely that debt settlement will lower your credit scores until you have finished with the settlement program. But once you have finished the program, credit scores usually improve.
Sometimes while involved in a credit card settlement service, you will have to agree not to use your existing cards or be advised not to enroll in any forms of new credit. It’s important to do your due diligence before jumping into any type of loan forgiveness or settlement program. It’s helpful to weigh out the pros and cons and speak to counselors to decide what will be most helpful for you.
What You Can Do
While enrolling in a debt service, it’s important to listen to your counselors on what you can do. You also must remember that your personal struggle with debt is not going to be the same struggle someone else is facing. You must try your best to not compare yourself to others. Everyone is fighting their own battle, but there are ways to win that fight. Along with working with a debt relief program, there are a few other ways to help yourself.
You can look for an additional source of income, such as a side hustle or a second job. There are so many ways that you can help pad your income, and you may need to be a bit creative in your quest. You can do something as simple as dog-walking, selling your personal crafts, or selling things around your house. All these methods can help you to earn more of an income, and help you quickly escape from your debt.
It’s also important to have a strict budget to follow since you’re paying off your debts. Know and understand how much money is in your bank accounts, how much your payments are each month. Do the work to truly understand what your finances are, and it will alleviate some stress for you.
$50,000 dollar bills don’t grow on trees, even though we wish they do. It does not come free. You cannot simply make $50000 fast, even though that would be nice. Unless you are an heir or heiress, you will have to work hard for your finances to be successful. If you look at everyone who is successful in our economy, hard work will be one of the common denominators that you find is one of the secrets behind their success. Even if you can’t get $50,000 fast, you can still save up steadily and achieve your goals.
Once you can get a handle on your debt, you will have to work hard to make sure that you manage your finances. Come up with a good financial plan, pay your bills or loans on time, and have a sense of what money you have in your account when you want to spend money.
A Closer Look at Debt
Now that we know the steps to reduce 50k of debt let’s look at some important statistics regarding debt.
Debt is a widespread and common issue, especially in the United States. According to a study in November 2019 conducted by CNN, US households have a record of $14 trillion in mortgages, student loans, car loans, credit cards, and other forms of debt. This number broke a record originally set in 2008, climbing by 1.3 trillion dollars. These numbers cast light onto the widespread reality of just how common debt is in this world. At DebtQuest USA LLC, there are resources and help that we can provide you with when it comes to paying off your debt.
Getting into debt in the first place is far too easy. It can often happen without you even realizing it. It’s an easy hole to fall into, but definitely not as easy to escape from. Most of the time, debt begins eerily unknowingly and innocently. Spending money is always way easier than making it, that’s a fact.
Debt can occur as simply as make a big purchase, splurge a little on something you want, or going on a vacation. It’s that easy to fall into debt. In the study conducted, it was found that the average person has a minimum of four credit cards. It may seem as if you’re being financially responsible by opening up multiple credit cards and trying to balance your spending but think again. Having multiple credit cards can make it harder to keep track of your spending or keep up with your payments, then bam! You find yourself saying hello to credit card debt and overwhelmed with the possibility of ever escaping. It happens all too often, sadly.
Being in debt can be extremely taxing mentally and physically on yourself. It can lead to anxiety, depression, and other health effects. Therefore, it’s really important to understand that you can get out of debt if you try.
We’re Here to Help
Do you currently need to pay off more than 50k in credit card debt? What about needing to pay off a slightly smaller (but still significant) $20,000 credit card debt? You may even have a monthly payment to make for a $50,000 loan. Whatever the amount, we can work with you. Our counselors can help come up with a plan. The first thing to understand is that escaping from your debt isn’t going to happen overnight. Reducing and minimizing the amount of your debt takes time; it takes a plan. Sometimes it can take anywhere from three to five years or even longer. So, buckle up your seatbelts, let’s explore some of the options that we offer to help you eliminate your debt.
At DebtQuest USA, we’re not here to judge you. We’re here to help you. Understand you’re not alone struggling with your debt problems, and that you’ve come to the right place if you want help. It’s okay to admit that you need some help, and although that might seem as if it will be scary, it makes you quite strong for wanting to fix your debt problems. With Debt Quest’s resources, we can offer to help minimize your debt thanks to multiple strategies such as a credit card payoff strategy. We’ll explore a bit more of these strategies more in-depth as we continue. Our three key services that are offered to help minimize the effects of your debt are debt consolidation, credit card debt, and debt relief. So, take a deep breath, you’re in the right place. It’s time to help you with your debt problems.
It’s important not to feel discouraged by your debt. Know that there are many recourses at DebtQuest USA that are here to help you. We can help find you the steps you need to take and enroll in one of our programs to escape from your debt. Debt settlement, debt consolidation, and debt counseling are a few of our programs that can help you get out of your debt. You can request a free debt relief quote at any time and see how much money you might be able to save today. We can help you get out of your debt and back to living your life.