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You could also go online and find potential lenders. For instance, Springleaf Financial offers personal loans from $1000-$25,000 and Creditloan has personal loans up to $5000. There is also a new breed of lenders called peer-to-peer lenders. These are websites such as the Lending Club and Prosper where the loans are made from one person or group of people to another with no financial institution involved. The Lending Club offers loans up to $35,000 and Prosper has loans up to $25,000. The interest you'll pay on these loans will depend primarily on your credit score. If you have a good credit score, you might be able to qualify for an interest rate as low as 8%. On the other hand, if you have a very poor credit rate you could be charged as much as 29.99%.
Optional ways to pay off credit card debts
If for some reason the idea of getting a personal loan to pay off your credit card debts doesn't appeal to you, you do have options. This includes.
1. Do a balance transfer – transfer your high interest credit card debts to a card with a lower interest rate or, even better, a 0% interest balance transfer card
2. Snowball your credit card debts – put them in order from the credit card that has the highest interest rate to the one with the lowest. Then focus on paying off the one with the highest interest rate while continuing to make the minimum payments on your other credit cards. When you get that first credit card paid off, you will then have more money available to begin paying off the card with the second highest interest rate and so on.
3. Create a credit card debt avalanche – this is roughly the same as snowballing your credit card debt except you put your debts in order from the one with the smallest balance to the one with the highest, You then do everything possible to pay off the one with the smallest balance then the one with the next smallest balance, etc.
4. Negotiate with your lenders – this is where you contact your creditors and offer` to settle your debts for less than what you owe. Spoiler alert – for this to be effective you will have to be nearly 6 months behind in your payments. And this would have a definitely negative affect on your credit score.
5, Earn more money – Get a second job and use all of the money you earn to pay off your debts. This is generally the fastest way to get out of debt.
6. Borrow from your retirement fund – if you have an IRA or 401(k), you could borrow from it and use the money to pay off your credit card debts. This can be a very good option because even though you will be required to pay the money back, you're actually paying it to yourself.
7. Declare bankruptcy – this is often called the ultimate solution because it will get rid of or discharge almost all of your unsecured debts and probably within six months. Of course, it will leave a stain in your credit reports that will last up to 10 years.
Lastly, here’s a video with three good tips for dealing with credit card debts.