Silvertail Associates and Polo Funding are under review by Crixeo, the popular news and reviews site, for being part of a long-running debt consolidation scam that exploits consumers with too much credit card debt. According to Crixeo journalist, Ed Miles:
“The story is the same. They lure you in by sending you direct mail with a “personalized invitation code” and a low 3%-4% interest rate to consolidate your high-interest credit card debt. You will be directed to Polofunding.com or MyPolofunding.com. More than likely you will not qualify for one of their debt relief loans and they will try and flip you into a more expensive debt settlement product.”Ed Miles, Crixeo.com
Do you have too much credit card debt on your hands? Then, you must know about the best tactics for paying off your credit card debt fast. The faster you pay off your credit card debt, the quicker you will reach your retirement fund goals. Financial independence and a comfortable retirement are possible only if you pay off too much credit card debt. If you continue to add credit card debt without any long term plan for the future, you will likely add to your financial stress.
Too much credit card debt can be detrimental because it can accrue interest at a frighteningly fast rate. Credit cards carry one of the highest interest rates among different lines of credit. Added to that, credit card interest rates have risen on average over the years. Since 2014, credit cards rates rose by 35% from an average of 12.7% to just over 17%. However, in the wake of the coronavirus pandemic, credit card interest rates might see a decline.
But the trends are clear. Credit card companies know that credit card debt is mounting with time and they want to cash in on this phenomenon by charging higher interest rates. Thus, if you owe too much credit card debt, then you must pay it off quickly to prevent high interest amounts from accumulating.
Before going any further, it is worth pointing out that you do not need to eliminate your credit card debt altogether. All you have to do is to keep your balances under 30% of the credit utilization ratio so that your credit score does not fall. Going towards a zero balance will not help you to lift your credit score. You need to maintain a level of debt that is easily manageable.
That being said, here are the best ways to get rid of too much credit card debt.
Pay off Debt on Your Highest Interest Rate Account
Look at all of your credit cards and arrange them, according to their interest rates in descending order. You will start paying off your debts starting from the top since these carry the highest interest rates. Clearing your debt in this method will help you to get rid of too much credit card debt in the shortest time possible while also minimizing your interest expenses.
While following this method, make sure that you do not neglect your remaining card while targeting your most expensive credit card. For all other cards, the minimum monthly payment will suffice. Try maximizing your payments for the credit card with the highest interest in your portfolio.
Sadly, a lot of Americans resort to only the minimum payments for their accounts due to which they end up with too credit card debt. So you must go well beyond the minimum interest if you do not want to have too much credit card debt.
One way to increase your payment amounts is to seek out extra sources of income. You should be willing to work longer hours for overtime or even do freelance work if that is possible. Any extra income that you earn this way should go towards debt servicing.
Use a Zero APR Card to Get Rid of Too Much Credit Card Debt
If your credit score is high enough, then you may be able to successfully apply for a zero APR card. Your credit score will have to be at least 690 to qualify for such credit cards.
Zero APR cards have an introductory period up to several months long during which you will be charged zero interest. This time frame can extend from 12 to 18 months depending on which credit card you are looking at. It is imperative that you clear your balance within this time frame, otherwise, you will be subjected to a steep interest rate. You can transfer balances from other credit cards into this account to enjoy the zero APR period.
There are a few issues that you must look into before going for such a card. First, your credit score must be up to the mark. Second, the credit limit must be big enough to accommodate your entire balance. Third, balance transfer fees must be zero or low, otherwise, the entire purpose of having a zero APR card will be lost.
Hence, zero APR credit cards can be double-edged swords in the sense that they can work for you and even against you depending on how you deal with them. With responsible payments and money habits, you can pay off your entire balance in time and avoid the heavy interest rate. If you doubt that you will be able to pay on time, then it is better to steer clear of such cards.
Save More to Pay Too Much Credit Card Debt
If you have too much credit card debt, then you should think of ways to save more money. Any extra money that you save should be spent on credit card payments.
You should buy your groceries and supplies from outlets that provide good discounts, deals and bargains. With such strong competition everywhere, retailers are vying for customers by luring them with attractive discounts. You can even enroll in a loyalty program if it is worth the money. Take care to do your research to find the retailer that can help you to save more. Some retailers also offer discounts for buying in bulk. If this offer is available in your area, then you should by all means take full advantage of this scheme.
There are numerous ways in which you can free up more money so that you have more cash for paying off too much credit card debt quickly.
Try to find side hustles and gigs where you can leverage your skills. If you are good at writing, then you can become a freelancer to earn more cash. Coding skills can also help you to win projects from various online platforms.
You can also think about your subscriptions and unnecessary expenditures like cable TV and the gym membership. There are much cheaper online streaming services to choose from in place of cable TV and you can exercise at home instead of going to the gym.
If you put your mind to it, you can find ways to cut down on too much credit card debt quickly. They key is to keep trying.