Do it Yourself
- UpdatedJun 14, 2024
- If you can afford to pay your credit cards down faster, you may be able to solve your debt problems yourself.
- You'll pay the entire balance owed with no concessions from creditors.
- Your credit rating should improve as you lower your balances.
It’s true: making your minimum payments keeps you looking decent on paper. You avoid late fees, aren’t reported to the credit bureaus as delinquent, and therefore don’t have to worry about hurting your credit score. So what’s the catch? Interest. You pay a very, very heavy price for making only your minimum payments.
Minimum payments are how credit card companies make money from you. When you make only the minimum payment, a significant portion of your payment goes towards your interest or finance charges.
If you are struggling to make ends meet and only paying the minimum on your accounts, it may feel like your balances never come down. Fees and interest accumulate quickly and you may even end up paying way more than you originally owed. Not to mention, it could literally take you decades to pay off. If you’re struggling with debt, it may be time to seek help.
There are online tools and resources that can help you calculate how much you’d need to pay each month to save on interest and pay off the debt by a certain date. You can find out different strategies for how to get out of debt by yourself. But if you are already struggling to pay the minimum on your accounts, these strategies may not be successful for you.
Instead, debt resolution may be a better option. The way the Freedom Debt Relief program is structured, your monthly program deposits could be lower than your current minimum payments. That means you could be working to resolve your debt while actually saving money each month.
To see if you qualify, call a Certified Debt Consultant at Freedom Debt Relief now at 800-910-0065.
Debt relief by the numbers
We looked at a sample of data from Freedom Debt Relief of people seeking debt relief during June 2024. This data reveals the diversity of individuals seeking help and provides insights into some of their key characteristics.
FICO scores and enrolled debt
Curious about the credit scores of those in debt relief? In June 2024, the average FICO score for people enrolling in a debt settlement program was 583, with an average enrolled debt of $24,376. For different age groups, the FICO scores varied. For instance, those aged 51-65 had an average FICO score of 587 and an enrolled debt of $25,386. The 18-25 age group had an average FICO score of 573 and an enrolled debt of $21,487. No matter your age or debt level, it's reassuring to know you're not alone. Taking the step to seek help can lead you towards a brighter financial future.
Tackle Financial Challenges
Don’t let debt overwhelm you. Learn more about debt relief options. They can help you tackle your financial challenges. This is true whether you have high credit card balances or many tradelines. Start your path to recovery with the first step.
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