Pay off debts with debt: When to, Why, and How to?

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Pay off debts with debt: When to, Why, and How to?

Pay off debts with debt: When to, Why, and How to?

Times have changed!


So has the debt industry.

It has become wider and expanded over the past years of market experience.
But, the most noticeable fact is that the general consumers have developed smarter tactics to tackle debts, side by side!
They are now searching for ways to pay off debts with debts, or get out of debt without even paying in the first place.
Sounds highly hypothetical, ain’t it?
Yet, to the surprise of all, there are some ‘approx’ ways to do so!
Maybe you have to pay at least something for your debts, but when compared to the original debt amounts, your payment numbers will feel null!
With the power of debt consolidation, good negotiations with creditors, and the right set of planning, you can claim to clear your debts by taking out other debts, or by paying next to nothing on debts.
Believe, it’s time for you to learn the art of not putting down your own money to eliminate the debts you have!!!

You can make use of a debt consolidation loan:

There are many financial institutions who allow you to take out a debt consolidation loan to pay off your debts.
This method is pretty good for you, if you are having a mixture of debts, and if those are mainly consumer or household debts.
This is falling under the category of debt consolidation. In fact, whenever the question comes to use debts to pay off other debts, debt consolidation is the primary indication.
Thus, by borrowing a consolidation loan, you can pay off all your debts that you are holding. But, to consider the paradigm, that by taking help of consolidation loan, you are entitled to pay off this new loan.
A debt consolidation loan might be a temporary relief from your current debt situation, but ultimately you are falling a victim of other debts.
Still you can use this typical debt consolidation option, if you want a marginalized average interest rate for all your debts, without negotiating with each of the distinct creditors, you are currently liable for making payments to.
A consolidation loan brings all your debts to one place, and interestingly you will have only one fixed interest rate (significantly lower than the present rates your other debts are facing). Therefore, only one monthly payment, is all you have to make!
A debt consolidation loan is definitely not your absolute solution, if your finances do not permit you to pay off your debts in full.
But, it is worth giving a try, for you will have only one single loan to pay off and that too over a new extended period.
This means you will get enough time to improve your finances and gradually pay off the loan. It’s just another way to restart the debt term, with an add on benefit of a lowered interest rate.

A credit card balance transfer can also be given a go:

Another typical structure of debt consolidation, designed on purpose by the debt industry, addressing credit card debt.
If you can do credit card balance transfer the right way then you might actually end up saving loads on the interest charges.
Balance transfer is also a special type of debt consolidation, as the initiation is to bring all your debts onto one credit vehicle, and hence have only one monthly payment.
Plus, if the new balance transfer card comes with a 0% APR introductory phase, then it’s a win-win situation. You can then pay off your debts in a ‘no-interest’ period, and thereby save lump sum amounts on the debt payments, overall.
Thus, to get out of credit card debt, this is probably the best Do-it-Yourself debt relief option, you should choose.
But, if things don’t go as per your wants, then you might just want to contact a debt consolidation company to manage your credit card debts.
The company will be handling payments for the creditors, where you will just make a single monthly payment to the company, which will be divided among your creditors.
With a professional debt consolidation program, you are not, however, using one debt to pay off other debts, unlike the balance transfer method!
Although, if possible, the consolidation company will surely try to help you make lowered payments, by doing some negotiations with the creditors, regarding interest rates or the overall debt amount.

Well, can you just ‘not use’ your own money to pay off debts?!

A very-very difficult and interesting situation to break down. This readily implies that you will be using one debt to pay off the other.
You can go on, but in the end, you will still owe someone, something.
Like say balance transfer for instance.
How long can you go on with transferring balances from one card to another?

At some point or the other, some specific banks will start to question your activities, and you will just end up tied in a more devastating debt cycle.
Now, here’s something I want to teach you. It is the benefits and advantages of debt settlement.
When your plans are not to pay off debts with your hard earned cash, then you have two options open to you.
The Bankruptcy (especially Chapter 7), or Debt Settlement, is what you should choose.
Well, bankruptcy can bring in many complications that I believe you will not like. If it was so cool, then everyone would have taken debts and filed bankruptcy so as to avoid the payments.

**Know why and how to avoid bankruptcy in details.**
Hence, the best debt relief option you got to apply is debt settlement.
In easy words, you consult a debt settlement company, and let the attorneys and experts out there, negotiate with the creditors!
Believe it or not, but a right settlement or negotiation with the creditors will help you save enormous amounts of money, that would have otherwise been wasted on debt payments.
Thus, to be on the safe side, and play legally, debt settlement is your preferred option, if you want to say goodbye to your debts without getting burdened by the original amounts.

Guess, we have reached the end of this post.

If I don’t end it here, then this will keep on getting stretched.
Feeling restless to provide your queries and suggestions on this subject? Start posting them below in the DISQUS comment section.
Or, keep circulating in our blog section, to learn more financial tactics and tips!

Last Updated on: Mon, 3 Jun 2019

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