High Credit Card Debt, Low Credit Score

As consumers’ financial problems in our society get worse and worse, fretting about your credit score is starting to seem like a high-class worry.  Everywhere you look, there is aspirational content about borrowing strategically so that you can improve your credit score and apply for an affordable mortgage, but this content makes the false assumption that there is a plausible scenario in which you might have enough savings for a down payment and a high enough income to make monthly payments on your mortgage loan.  Your low credit score is causing problems other than keeping homeownership out of your reach; if you are being realistic, it is obvious that homeownership was never within your reach to begin with.  Right now, you are stuck trying to pay off your credit card debt.  If you are lucky, you can pay the minimum payment on your credit card balance every month, but it goes right back to being maxed out once your credit card issuer applies the interest charges.  The easiest paths to getting out from under a credit card debt burden like this require a higher credit score than yours.  If your low credit score is one of many obstacles to paying off your credit card debt, contact a Miami debt lawyer.

You Know You Are Privileged If You Can Qualify for a Debt Consolidation Loan

Debt consolidation loans are an excellent way to pay off high interest debts such as credit card balances, if you can afford them.  A debt consolidation loan is a low interest, unsecured personal loan, usually issued by a bank or credit union.  When you use it to pay off your credit card debt and then pay off the debt consolidation loan slowly, you pay less interest, by the time you had paid it off, if you had paid the same amount in monthly installments toward your credit card balance.

Of course, it is not so easy to get an unsecured loan unless your credit score is robust.  With your credit score, the loan the bank will approve might only be big enough to pay off a fraction of your credit card debt, and its interest rate may be uncomfortably high.

Options for Paying Off Your Credit Card Debt When Your Credit Score Is Down in the Dumps

The fastest way to get rid of credit card debt that you cannot pay is to file for chapter 7 bankruptcy protection.  Of course, if you have already filed for bankruptcy, you must wait several years before you can file again.  Therefore, you might choose to settle your credit card debt by contacting the lender and negotiating directly.  Another option is to borrow from an alternative lender, such as an online bank or peer-to-peer lending service.  These lenders tend to have less strict requirements about credit scores, and sometimes the terms of the loan are affordable.

Work With a Debt Lawyer About Stubborn Credit Card Debt

A South Florida debt lawyer can help you if your credit score is stopping you from applying for a debt consolidation loan.  Contact Nowack & Olson, PLLC in Miami, Florida to discuss your case.

Source:

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