Neon Funding Consumer Warning
Should you respond to Neon Funding, Cobalt Advisors, or Credit 9 and trust them that this is the best way to get out of credit card debt? If you have been thinking about it and you just received a “too good to be true” loan offer in the mail from Neon Funding, Cobalt Advisors, Saxton Associates, Hornet Partners, Piper Funding, Polk Partners, Ladder Advisors, Apply Credit9, Cambridge National Lending, Greenlink Financial, Americor Funding, or Titan Consulting Group – listen to your gut instinct. Do you really think you qualify for a 3.99% interest rate? Do you really think that reservation code is especially for you? Check Best 2020 Debt Reviews and find out the truth.
More Americans are falling into debt than ever before. The total credit card debt in the country is in excess of $1 trillion and shows no signs of slowing down.
This number may be high, but it is still smaller than the total amount from student loans, auto loans, or mortgages. However, credit card debt is considered to be the most pressing issue from the point of view of lenders in America.
Neon Funding – Why Is It So Hard To Get Out Of Credit Card Debt?
It can be difficult to get out of credit card debt due to high interest rates and revolving debt. Compare this to student loans that get easier to pay off over time thanks to income increases down the line.
It’s better for debtors to consolidate debt as soon as possible. Unpaid credit card debts could get out of hand and become more difficult to manage in the future. Here are some tips to get out of credit card debt.
1. Debt consolidation
A popular method for getting out of credit card debt is to use a consolidation loan. Many Americans own multiple credit cards. As a result, they often have to pay multiple credit card bills per month.
Paying off multiple bills takes up time, and the interest paid on these cards tends to add up in the long-run. Some credit cards have high interest rates, so debtors should try to pay their credit card bills as soon as possible.
People often use consolidation loans to combine multiple high-interest debts into a single debt to lower your interest rate. This single debt is much easier to manage, and the lower interest rate can ease the burden on the debtor.
This is usually the go-to method to get out of credit card debt. However, debtors should ensure that their consolidation loan’s term isn’t too long, or they may end up paying more interest in the long-run.
2. Take up a side hustle
Some Americans have a secondary job that provides them with extra income. This secondary job is known as a “side hustle” and is typically a flexible part-time occupation that they can perform whenever they have time to spare.
For example, owners of pick-up trucks often offer delivery services to people that need them. These individuals can work when they want to, and they charge however much they please. The earnings from side hustles aren’t usually much compared to their primary jobs, but the money earned from these side hustles could be spent towards paying off your credit card bills. If you want to get out of credit card debt, it may be worth taking up a secondary occupation that fits your schedule.
3. Pay a higher amount
People with large credit card debts often pay only the minimum required amount each month. This practice should be avoided as it leads to greater interest charges. Debtors should instead pay an amount that is higher than their monthly minimum.
By paying more than your minimum, you can cut down on interest charges and get out of credit card debt faster.
This method could also help your credit score, as credit agencies view debtors who pay above the minimum amount more positively. However, this method is sometimes passed over in favor of debt snowballing.
In debt snowballing, debtors typically pay off their higher APR credit card as soon as possible while making minimum payments on their other credit cards. Once this card has been paid off, debtors can concentrate on paying off their card with the second-highest APR.
4. Managing your budget to get out of credit card debt
People who are struggling with credit card debt may have fallen into debt in the first place due to poor spending habits. Even if these people are able to get out of credit card debt, they may fall back into debt in the future if they do not rethink their spending habits. The best way to consolidate debt is to manage your budget.
You can manage your finances with proper budgeting and pay off your credit card debt gradually. Good budgeting typically involves tracking your expenditures and revising the percentage of income you spend on wants, needs, and savings. You can always take advantage of the debt consolidation process.
If you’d like to get out of credit card debt, you may have to cut down on purchasing “wants”. These include non-essential expenditures such as fancy coffee or going to the movies. However, this approach requires good discipline and perseverance. It can be tempting to splurge your new savings on luxuries, but you should focus on paying off your debt instead.
5. Selling off assets
If you’re struggling to get out of credit card debt, there’s no shame in selling some of your belongings. People often hold garage sales to make extra cash on the side.
Garage sales are a great way to declutter your house and ease your debt. Depending on much stuff you’re willing to sell, you may be able to make a significant dent in your credit card debts.
Some people choose to sell off their possessions during difficult times and replace them in the future when they are more financially stable. The only drawback of using this method is that you may lose some items that possess sentimental value.
Other ways to get out of credit card debt
There are other ways to get out of credit card debt such as declaring bankruptcy or using the help of a counselor to negotiate your debt down. However, these methods are viewed as risky and could end up landing you in a worse situation than before.
Declaring bankruptcy due to coronavirus could ruin your credit score and appear on your credit history for a whole decade. Negotiating to reduce your debt could go awry if your creditors choose to take legal action against you.
Some credit card companies offer hardship programs for people who are struggling to get out credit card debt. These programs sometimes waive your interest charges or other fees to make it easier to pay off your credit card debt. However, these programs are not offered to everyone. So you will likely still be at the mercy of your credit card company.