How to get out of credit card debt when you can’t get a consolidation loan

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By CreditNinja
Modified on June 18, 2023

The best way to get out of credit card debt if you can’t get a consolidation loan is to use a strategy called the “debt snowball.” This is a strategy that involves paying off the lowest debt first, then working your way up from there. There are two main debt-payment strategies that people use to tackle large amounts of debt. One is called the “debt avalanche” and the other is called the “debt snowball.” 

The Debt avalanche is when you start by focusing your payments on the largest debt you have. You continue to make minimum payments on the other debts so that you don’t default on your loans. But any extra money you can put toward your debt goes to the largest one. Once the largest one is paid, you move to the next largest. 

The debt snowball on the other hand is when you do the opposite. You put all your extra money toward the smallest debt until it’s paid off. Again, it’s important to remember that you’re not ignoring your other payments. Keep paying on the other loans as well, just make minimum payments. Once the lowest debt is paid, you move to the next smallest. 

The reason people recommend the debt snowball, over the avalanche, is because you’ll see a win much faster than you would with the avalanche. Getting an early win is a great way to boost your motivation and help you stay on track. It’s always nice to see one of your debts completely gone. And that motivation is key to paying off your remaining loans. 

No matter which debt-payment strategy you choose, the most important thing is to keep making payments. Missing payments and late payments will likely add more fees to your balances. This will make it that much more difficult to pay everything off. 

There are a lot of great ways to get your finances on track. These strategies are proven ways to help borrowers tackle their debt. You may also consider reaching out to a credit counselor. These are professionals who help people organize and manage their debt. Just make sure anyone you’re considering is trustworthy before working with them.

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