Oh wait🙄, you read that wrong too? We really need to get a hold of our titles but in all seriousness, you can't get out of paying your debts but these are 5 ways to avoid using when paying off (credit card) debt .
Borrowing from your pension.
This is the last option you should look at as you risk your future income. Most pension providers will not allow you to do this and if they do, they will charge you a hefty early withdrawal charge. ⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀
Borrowing from your mortgage:
This is an option that is available to you but you risk losing your home and the fact that you are essentially borrowing over a much longer term which will cost incredibly more in comparison to getting a typical loan with therms up to 5 or 10 years. If you don't repay the extra amount you borrowed from your mortgage as soon as possible then you risk paying an absurd amount in interest due to your new borrowing
Debt settlement companies:
Debt settlement companies typically rely on a strategy of non payment and then trying to negotiate a settlement with your creditors for even less than you owe. Whilst this strategy works sometimes, it will leave you with a bad credit score due to missed payments and your creditors might not even agree to a settlement which will leave you with a higher debt amount than you had before and a new nightmare.
This nightmare will be even twice its weight if the debt you currently have has compound interest attached to it.
Consolidating with a high-interest loan:
The point of consolidating your debt is to reduce the cost of the debt. Getting a high-interest loan simply increases the cost of the debt for no reason whatsoever. You might say you have a lower monthly repayment but thats because its now spread over a longer term.
If you find a debt consolidation loan which saves you in interest payments on your current debt over the lifetime of the loan then this is a win.
Transferring your balance to another credit card:
Some people will transfer their credit card balance to a new credit card with a few months of 0% interest in the hope that they will pay off the debt before the interest kicks in. Great plan but it's a gamble, especially due to the fact that most 0% introductory offer balance transfer credit cards usually have high-interest rates waiting for you at the end of the introductory offer and in some cases the cost of transferring your balance from your current credit card might mitigate any potential savings.
You must ensure you have worked out how and when you will pay off your debt before moving it over to another credit card.