How To Pay Off Credit Card Debt Fast (Even If You Have No Extra Money)

Nov 6, 2018 | Debt | 15 comments

Updated On April 27, 2020

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Did ya know that 80% of Americans are in debt? (With most of that debt being from credit cards!)

Now:

That’s 260 MILLION Americans that are in debt.

That’s, like, soooo many freaking people.

And, here’s the deal:

Credit card debt is especially hard to pay off because of high-interest rates and if you don’t have a ton of extra money lying around to pay more than your monthly minimums each month, it can take YEARS to get rid of credit card debt.

So, you might be wondering:

These are the 2 most effective ways to pay off credit card debt.  Even if you are broke and cannot pay more than your monthly minimums, personal loan consolidation or balance transfer options are the answer to your troubles.  Click now to learn how to pay off credit card debt fast!  And don't forget your free debt printables. #debt #creditcard #payoff #printables #debtfree

Some of the links in this post are “affiliate links.”  This means if you click on the link and purchase the item, WSW will receive an affiliate commission.  Additionally, Who Says What is a member of the Amazon Affiliate Program.  Please review our Privacy Policy for more information.

“How on earth am I supposed to pay off credit card debt when I can’t afford to pay more than my monthly minimums?”

Well:

I paid off $6,000 in credit card debt (don’t judge me) while saving over $3,000 in the process and cutting my pay-back time in half – and you can too.

So, how’d I pay off my credit card debt quickly, cost-effectively, and raise my credit score by over 55 points?

I consolidated my credit card debt with a personal loan!

Here’s the dealio:

Paying off credit card debt using personal loan consolidation (or balance transfer options) is awesome for 3 reasons:

1.  lower interest rates

2.  shorter pay off time

3.  increased credit score

Now:

Let’s dive into what credit card debt consolidation is, the pros and cons, if it’s right for you, and how to get started!

(Don’t forget your free debt printables by signing up for our resource library below!)

WHAT IS CREDIT CARD DEBT CONSOLIDATION?

Credit card debt consolidation is when you combine all of your credit card debt into one payment using a balance transfer to a lower APR credit card or a personal loan.

In other words, you’re going to lump all of your credit card debt into one nice, low, convenient payment.

As I mentioned, you can do this two ways:

1.  with a balance transfer credit card

2.  using a personal loan

For debt consolidation to work in your favor, you must transfer your debt to a lower APR option!

Next:

What are the pros and cons of consolidating your credit card debt?

THE PROS OF CREDIT CARD DEBT CONSOLIDATION

There are three major benefits to credit card debt consolidation!

They are that:

1.  Personal loans and balance transfer credit cards *usually* have lower interest rates which will save you hundreds, if not thousands, of dollars.

2.  Debt consolidation helps you pay off debt quicker because of decreased interest rates and overall monthly minimums.

4.  You’ll *likely* increase your credit score.

Now:

You don’t have to take my word for it that debt consolidation is an awesome way to become debt-free quickly (or quicker than you would have if you didn’t consolidate your debt).

Just take a look at the examples below:

(They’ll definitely be enough to convince you!  I mean, #1 is INSANE!)

1.  LOWER INTEREST RATES

The average credit card interest rate is a whopping 16.71% and can reach a height of almost 26% if you have poor credit.

Personal loans, on the other hand, can have interest rates as low as 5% and on average do not exceed 15%.

And, balance transfer credit cards often have 0% APR specials for the first year.

That is a major factor in determining how fast you’ll be able to pay off your credit card debt.

It’s also the reason you’ll save hundreds, if not thousands, of dollars when you’re done paying off your credit card debt.

I mean, look at this insane example:

If you owed $2,500 on your credit card and made your minimum payment of $65.00 each month, you’d end up paying $1105 in interest!

On the contrary:

If you took that same debt and consolidated it into a personal loan (with an average interest rate of 10%), you’d only pay $270 in interest.

Additionally, if you transferred your balance to a 0% APR credit card and paid off your balance in 1 year, you’d pay $0 in interest!

That. is. wild!

When I saw that I could save $2,000 by consolidating my credit card debt into a personal loan I was SOLD!

Hint:  I used Credible.com to find my personal loan and recommend them to everybody!  They saved me $2,000 in interest costs!

2.  PAY OFF CREDIT CARD DEBT IN HALF THE TIME

If you’re only able to make minimum payments on your credit card, it’s gonna take you hella long to pay it off.

For instance, that scenario we talked about in the last section, would take you 4.7 years to pay off if you only continued to make your minimum payments.

But:

If you consolidated that debt, it would only take you 2 years to pay off!

Again, f*cking crazy!

When I consolidated my credit card debt into a personal loan I cut my pay off time in half (from 6 years to 3).

3.  YOUR CREDIT SCORE WILL IMPROVE

Consolidating your credit card debt will do 2 things for your credit score (more specifically with a personal loan, from experience):

1.  Personal loan consolidation will lower your overall credit card usage

2.  It will increase your credit score

Here’s why:

After you’re approved for a personal loan, you will get a check or direct deposit for that amount.  Then, you pay off all your credit card debt with that money.

And, while your personal loan will show up on your credit report, having zero credit card debt will do wonders for your score.

The proof is in the pudding:

When I consolidated my credit card debt with a personal loan, my credit score increased by 50 freakin’ points!

THE CONS OF CREDIT CARD DEBT CONSOLIDATION

I think we’d all agree:

Those are some pretty compelling pros to consolidating your credit card debt with a personal loan or balance transfer.

But, you might be wondering:

Is it too good to be true?

Let’s look at the one con of credit card debt consolidation and decide:

1.  Consolidating your credit card debt into a personal loan or by using a balance transfer credit card opens up another line of credit on your credit score

However, while simultaneously bringing other lines of credit to zero.  This, to me, balances everything out. 

While credit card debt consolidation may have a con, it is by far the best option for you if you:

  • have bad credit
  • can only afford your monthly minimum payments
  • feel like you’ll never be debt-free
  • have been sued over your debt
  • want to save money while paying off debt

I have a funny feeling at least one of these things apply to you, so here are the best debt consolidation options for you:

BEST PERSONAL LOAN OPTIONS:

Finding a personal loan to pay off your credit card debt is very simple if you know where to look.

I recommend these options, though, over others, due to their low-interest rates and approval time:

1.  Credible – APR’s as low as 4.99% and can be prequalified in as little as 2 minutes.

(This is who I used to consolidate my debt and I couldn’t be happier with the service and savings!)

Click here to use their calculator to see how much money you could save by consolidating your debt!

2.  PersonalLoans.com – A 100% online application that is quick and easy.  Loans up to $35,000 and APR as low as 5.99%!

Click me to start your no-obligation online request.

3.  Trusted Personal Loans – Perfect for people with lower credit scores!  Loans up to $40,000.

Click here to be connected to a trusted lender!

BEST BALANCE TRANSFER OPTIONS:

Here’s the deal:

I don’t have specific credit cards to recommend to you for a balance transfer.

But:

This is my best advice when shopping for a new credit card to transfer your current credit card debt to:

1.  Use a tool like CreditKarma.com to get an accurate picture of your credit score.

2.  Use CreditKarma.com to shop around for the best credit card options based on your current credit score.

3.  Only choose a balance transfer credit card that has a lower overall APR than your current credit cards OR is offering a 0% APR through the first 12+ months.

If you stick to those tips, you’ll have no problem finding a good fit for your credit card debt consolidation.

HOW TO TRACK YOUR DEBT REPAYMENT

Let’s face it:

If you don’t track your debt goals and repayment progress, it will be impossible to become debt-free.

I know this sounds dramatic, but hear me out.

When you don’t write down your debt information or create goals to pay it off, you will have zero accountability in paying off your debt.  Your spare money will go towards shopping at Target and early morning coffee runs.

But:

By WRITING down your debt repayment goals and TRACKING your progress, you will be able to pay off your debt faster than you ever imagined possible.

Because I know how important it is to track your debt repayment, I created the Budget Boss Binder as a tool to analyze your finances, create financial goals, and track them for success.

Included in our 40+ page Budget Boss Binder is financial analysis worksheets that will tell you how much extra money you have to put towards debt, debt repayment and roadmap worksheets that outline your total debt and your plan to pay it off, and monthly debt repayment trackers that show you your progress.

And, because we love our readers so much (come on, where would we be without YOU?) we’re offering our lifetime budget binder for 50% off when you purchase through this link.

As I mentioned, the Budget Boss Binder will undoubtedly help you pay off your debt quicker and in general, keep your finances organized for a more successful life.

Here’s the best part:

For a one-time investment of only $9, you’ll instantly receive:

  • Our undated 40-page Budget Boss Binder (use year after year)
  • Access to our most popular budgeting templates and checklists
  • Free updates for life (automatically sent straight to your inbox)
  • Free weekly money tips, resources, and printables

Now:

It’s time for you to take action towards affording your best life – invest in our Budget Boss Binder for just $9 by clicking here.

These are the 2 most effective ways to pay off credit card debt.  Even if you are broke and cannot pay more than your monthly minimums, personal loan consolidation or balance transfer options are the answer to your troubles.  Click now to learn how to pay off credit card debt fast!  And don't forget your free debt printables. #debt #creditcard #payoff #printables #debtfree

So:

If you’re looking to pay off your credit card debt quickly (who isn’t?), getting a personal loan or a balance transfer credit card is the best option.

Personally, I’ve saved over $2,000 in interest costs and cut my payback time in half when I consolidated my debt with a personal loan.

Start your journey to becoming debt free by applying for a personal loan or balance transfer credit card, today!

Don’t forget to sign up below to download your free debt thermometer so you can track your progress!

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DESTROY THAT DEBT!

– Michelle

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These are the 2 most effective ways to pay off credit card debt. Even if you are broke and cannot pay more than your monthly minimums, personal loan consolidation or balance transfer options are the answer to your troubles. Click now to learn how to pay off credit card debt fast! And don't forget your free debt printables. #debt #creditcard #payoff #printables #debtfree
These are the 2 most effective ways to pay off credit card debt. Even if you are broke and cannot pay more than your monthly minimums, personal loan consolidation or balance transfer options are the answer to your troubles. Click now to learn how to pay off credit card debt fast! And don't forget your free debt printables. #debt #creditcard #payoff #printables #debtfree
These are the 2 most effective ways to pay off credit card debt. Even if you are broke and cannot pay more than your monthly minimums, personal loan consolidation or balance transfer options are the answer to your troubles. Click now to learn how to pay off credit card debt fast! And don't forget your free debt printables. #debt #creditcard #payoff #printables #debtfree