I have about $11,000 in credit card debt with APRs over 20%. My wife and I earn little income and are currently working on a mortgage modification for a lower payment. As part of our “get control of our finances” plan, we’re wondering what our best option (most affordable monthly payment, quickest way to pay off) is for the credit card debt.
With $11,000 in cc debt, what is the best option for the lowest monthly payment to pay off within 4-5 years? Please advise. Thank you.
Depending on your credit score, the best solution would be to get an unsecured fixed rate consolidation loan like those offered by LendingClub.com. The loan would be for three years and would be reported to the credit bureaus so it would resolve your debt situation and improve your credit at the same time.
The second choice, if you can easily afford the minimum monthly payments would be to click here for credit counseling information and talk to a credit counseling company about lowering your interest through a debt management plan. The downside to that approach is your cards would be closed and that can impact your credit report a bit.