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How to pay off $7,500 in credit card debt
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Today’s economic environment can be a challenging one if you have credit card debt. The cost of living is climbing as inflation continues unabated, which can make it difficult to budget for your credit card payments. Moreover, the Federal Reserve’s federal funds rate target currently stands at a 23-year high. And since that’s the primary benchmark for consumer interest rates, your credit card interest rates may be higher today than they were just a couple of years ago, pushing your minimum payments higher, too.
This can quickly result in thousands of dollars in accumulated credit card debt. So, what should you do if you have $7,500 (or more) in credit card debt? Since $7,500 is often the minimum amount of debt that debt relief companies are willing to help with, you may have multiple options to consider now.
Compare your debt relief options now.
How to pay off $7,500 in credit card debt
Here are three effective ways to pay off $7,500 in credit card debt:
Take advantage of debt relief
“In an inflationary environment, securing necessary debt relief is crucial,” explains Michael Broughton, founder and CEO of the credit-building app, ALTRO. “As interest rates rise, the cost of servicing debt escalates and burdens both individuals and businesses with higher payments.”
But, debt relief services can help in multiple ways. “Getting debt relief, whether through negotiating terms, exploring refinancing options or seeking assistance programs, provides essential financial breathing room,” says Broughton.
Here’s how can debt relief services help you pay off $7,500 in credit card debt:
Have an expert get you out of debt today.
Ask your lenders for help
Many lenders that offer credit cards also offer credit card hardship programs. These are typically short-term programs (usually lasting six to 24 months) that are designed to ease your financial burden in the event of a financial hardship. So, getting the help you need may be as simple as calling your lenders and asking for it.
Once you ask for help, your lender may ask questions about, and for proof of, your financial hardship. For example, if unexpected medical bills caused your hardship, your lender may ask for copies of those bills.
Nonetheless, if you qualify for a credit card hardship program, your lender may reduce your minimum payment, your interest rate or both, for a predetermined period of time. That could give you time to get back on your feet financially.
Take out a home equity loan
If you own your home, you may have quite a bit of equity that you can tap into. The average American homeowner can safely tap into around $193,000 in equity (without losing too much of a stake in their homes). Importantly, home equity loans typically come with competitive interest rates.
While the average credit card interest rate currently stands at over 20%, the average home equity loan interest rate is just 8.63%. So, if you use a home equity loan to pay off your $7,500 in credit card balances, you could realize significant interest savings.
The bottom line
High credit card interest rates and minimum payments can be difficult to stomach in today’s inflationary environment. So, if you owe $7,500 in credit card debt or more, it’s advantageous to pay your debt off as soon as possible. Debt relief services can help. You may also get short-term relief by reaching out to your lenders. And, if you own your home and have maintained a good credit score, you could save on interest by using a home equity loan to pay your credit card debt off. In any case, it’s important to act now. The faster you take control of your credit card debt, the faster you’ll be able to put it behind you.
Sundance Head, the 2016 winner of “The Voice,” is recovering after an accidental shooting at his ranch in Texas, his publicist told CBS News.
The 46-year-old Houston native – whose name is Jason Head – was putting a gun away at his ranch when it “slipped out of the holster, hit the side of the jeep and discharged into his stomach area,” the singer’s publicist Trey Newman told CBS News in a statement on Saturday.
Newman said the bullet missed any vital organs and the singer is expected to make a full recovery.
In a post on Head’s official Facebook page, his wife Misty offered updates after the incident and asked for prayers.
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In the post, she said that after the bullet hit Head, he ran to the end of the road to flag down a car that could help him.
“He’s so lucky and grateful to be alive. Thank you to the Good Samaritan who stopped and helped and the fast response by life flight and the doctors,” she wrote.
Misty added that the bullet was logged in the fatty tissue of his stomach and that “him being on the bigger side was a good thing.”
“Prayers answered as no internal damage was done by the bullet. Thank you all for the prayers,” she said.
Head first rose to fame after a 2007 appearance on “American Idol,” where he revealed he is the son of singer Roy Head. He went on to compete on “The Voice” in 2016 as part of Blake Shelton’s team and he was crowned the winner.
CBS News
10 newborn babies killed after fire engulfs hospital ward in northern India, injuring 16 others, authorities say
A fire tore through a neonatal intensive care unit in a hospital in northern India, killing 10 newborn babies and injuring 16 others, authorities said.
The fire occurred late Friday at a hospital in Jhansi city in India’s Uttar Pradesh state. Officials said the blaze spread quickly through the ward, where 55 infants were being treated. Forty-five babies were rescued and are receiving medical care, said Bimal Kumar Dubey, a local official.
It was not immediately clear what sparked the blaze. Brajesh Pathak, the deputy chief minister of the state, visited the hospital and met with families on Saturday. He pledged government support for the victims’ families and promised a thorough investigation.
“We will identify those responsible for this tragedy and take strict action. The government stands with families during this difficult time,” he said.
AP
When the firefighters arrived, the ward was engulfed in flames and plumes of smoke. Rescuers had to break through windows to reach the newborn babies. Eyewitnesses said the rescue operation began about 30 minutes after the fire erupted, delaying evacuation efforts.
The accident has raised questions over the hospital’s safety measures. While fire alarms had been installed in the intensive care unit, parents and witnesses said they did not activate during the blaze. Hospital staff acted only after they saw signs of smoke and fire.
“If the safety alarm had worked, we could have acted sooner and saved more lives,” said Naresh Kumar, a parent who lost his baby.
Akhtar Hussain, whose son was rescued and is receiving treatment in an adjacent ward, agreed that the tragedy could have been prevented if the hospital had better safety protocols.
Fires are common in India, where building laws and safety norms are often flouted by builders and residents. Poor maintenance and lack of proper firefighting equipment in the country also leads to deaths.
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