February 26, 2021
Short-Term Loans and Title Loans in Kansas City Can Help
Many Americans face the problem of large balances on their credit cards, and worry about how to get out from the debt load they are carrying. Personal bankruptcy is an option, but less severe actions, like debt settlements, entail contacting the credit card companies and making an agreement to pay off a portion of the debt. Both actions will have repercussions that can last for years and affect your ability to get any type of credit.
There are other methods to attack the high-interest credit card debt you’ve incurred that are far less drastic and won’t so severely affect your ability to get credit.
One method of attacking your high-interest credit card balances is to consolidate the debt by obtaining a lower interest rate loan. This allows you to convert the debt on several credit cards to one convenient loan that will have less interest and typically a lower monthly payment than the payments required by your credit card providers.
If your mountain of credit card debt has left you with something less than stellar credit, a short-term loan secured by a collateral asset may provide one of the best loans for bad credit or damaged credit. One type of bad credit loan that typically requires no credit check is a title loan on your vehicle.
Title loans are some of the best loans for bad credit, since all you need is a clean title on a vehicle that you own. With this, and a few other easy pieces of info, you can quickly get a short-term loan. You can then take the loan proceeds and pay off your higher-interest credit card debt and simply make the monthly payments required by the loan terms to the title lender.
Title loans are much easier to get than personal loans, as your vehicle is used as the collateral for the loan. The interest rate on the loan may be lower, as there is less risk involved for the lender.
Debt Payment Plan
Many credit counseling experts will advise a combination of methods to get you to a point of debt freedom. The first step is to evaluate your financial situation. This starts by compiling a list of everything you owe, including credit card debt and other monthly bills. Compare your income with your monthly bills including credit cards, rent, other loans, grocery bills, and other necessary monthly expenses. Prioritize your spending based on the amount of income you can allocate to each of the expenses.
After doing this you should set up a budget to assist you in tracking spending and looking for ways to trim expenses, which will allow for more available funds to pay off debt. At this point, you should determine a method for attacking the large credit card debt to trim down the amount that is owed to get it to a manageable level.
One of three key payment strategies can then be employed – the avalanche method, the snowball method, or the blizzard method.
The avalanche method is employed by paying off the higher interest rate credit cards first. Pay at least the minimum amounts due on your other credit cards and pay the larger amounts available for debt payment to the highest interest rate credit cards. Keep making these payments on the highest interest cards until those cards are paid off and then attack the next highest interest cards. By attacking the credit cards in this manner, you will save large amounts of money in interest payments.
The next method of attacking credit card debt is the snowball method. In this plan, you pay off the credit cards with the smallest balances first and work up the list from there. Of course, you keep making at least the minimum payments on all of your cards and apply the extra amounts available to the cards with the smallest outstanding balances. As you pay these off, move up the list to the next smallest balance.
The blizzard method is a combination of the snowball and avalanche methods, which gives a psychological boost in paying off the smaller balances while saving interest in still paying extra on the highest interest cards.
Once you get the credit card balances to a manageable amount through employing the above tactics, you can then jump in with a car title loan to pay off the full balances to get yourself clear of the debt.
Title Loans in Kansas City Get You the Cash You Need
If you need a little extra cash to jumpstart your debt repayment efforts, look no further than Midwest Title Loans in Kansas City. We offer several options when it comes to title loans, short-term loans, and other no credit check loans. Fill out our online application today to get started, or stop by one of our Kansas City area locations to talk with our knowledgeable loan representatives.